Citigroup is suspending foreclosures and evictions for about 4,000 homeowners from today through Jan. 17, in a temporary break for distressed borrowers for the holidays.
The 30-day suspension only applies to Citi-owned mortgages. Properties already seized will not be sold, and homeowners in those properties will not be evicted for the suspension period.
“We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes,” Sanjiv Das, head of the company’s mortgage division, told the Associated Press.
Citi said it will help 2,000 homeowners with already scheduled foreclosure sales, and another 2,000 that were suppose to receive foreclosure notices.
According to the U.S. Treasury’s report for last month, Citi has placed 100,126 borrowers in the government’s Home Affordable Modification Program, or HAMP. But only 271 have had their re-drawn mortgages made permanent.
GMAC Mortgage, JPMorgan Chase and Ocwen Financial reported the most permanent mortgage modifications, with 7,111; 4,302;and 4,252, respectively.
In the current quarter, Citi said it helped about 130,000 distressed homeowners with loans it owns or services remain in their homes, and avoid foreclosure on mortgages valued at more than $20 billion. Total loss mitigation actions for borrowers serviced by Citi rose 85 percent from the same period in 2008, Citi said.
In the third quarter, Citi processed nearly 175,000 mortgage applications with an aggregate value of $25 billion, and originated about $14 billion in mortgage loans.
