Looks like Citigroup is going to start lowering the mortage payments of some unemployed homeowners. Which is good. And, really, maybe a little late. They call it the Homeowner Unemployment Assist program, and those eligible include those who are more than 60 days past due on their mortgage or those in foreclosure–who can pay the reduced amount. In addition, the customer must have a first mortgage through Citigroup, and the home must be customer’s primary place of residence. So this is not for someone trying to save their summer home in Tampa.
This is some much needed relief for homeowners trying to make ends meet merely on unemployment insurance–not an easy feat. The hope is that other banks, out of self-interest if nothing else, will learn from Citigroup’s example, and institute programs designed to find middle ground with reeling homeowners.