Citigroup Proceeding Satisfactorily In Taking Steps To Prevent Foreclosures

September 8th, 2009 | Tags: Foreclosures

prevent_foreclosures

From the reports of the company it appears Citigroup is proceeding satisfactorily in taking steps to prevent foreclosures. It has added to the strength of its staff by 1,400 since the beginning of this year to deal with foreclosure prevention. It has assisted 108,000 homeowners to skirt foreclosures from April to June this year – the number showing 30% increase over those it helped during the first three months of the year. The rate is double that of what it was six months previously.

Sanjiv Das the chief executive of CitiMortgage stated in a news release, “CitiMortgage’s main concern is to help as many of our distressed customers as we can with a solution that is appropriate for their individual financial circumstances and needs. We are encouraged by the success of our initiatives, and are dedicated to doing more.”

The numbers of mortgage borrowers needing assistance are increasing. Last week the Mortgage Bankers Association said that the at least 13.16% of all those who have residential mortgages are lagging behind in payment during the second quarter of 2009. This is the highest percentage on their records. MBA’s spokesperson also added that the numbers will not reach a level until unemployment does so. It is apprehended that this will not happen till 2010.

The steps take by Citigroup include adopting modification steps outlined by the government prevention plans and also other measures like extending terms, allowing forbearances and reinstatements. Figures show that modifications in actuality are down by 5% during the second quarter because of the enforcing of the government modification plans. According to it a three month trial period has to be allowed before finalization of the modification.

At the start of last month (August 2009) the government said that over 400,000 modifications of mortgages have been extended via this government plan. Over 230,000 trial modifications have been set into motion. The programme is geared to offer help to nearly 3 to 4 million borrowers of home mortgages during the forthcoming three years. Progress reports are being submitted each month.

Last July the Treasury and HUD put pressure on the servicers taking part in the government programmes to increase the strength of their staff and make the application process less cumbersome and more streamlined. This has led many in the lending industry to think that the government is placing tough challenges before them.

Search Images:

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.