Citi gives foreclosure victims a Christmas present

foreclosureWhile President Obama has been spanking the "fat cat bankers" for their evil ways, it seems that at least some of them may have some Christmas spirit this holiday season. According to the AP, Citigroup has decided to suspend foreclosures and evictions of 4,000 borrowers for 30 days.

"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," said Sanjiv Das, head of Citi's mortgage division. Of course, this is all well and good for those folks in foreclosure who may find themselves temporarily spared by the company, which announced the respite would begin this Friday. However, what Mr. Das seems to have left out, was that on Jan. 17, when the moratorium ends, all bets are off.

If you think that you might be one of the lucky few to stay foreclosure or eviction, you should know that the program only addresses those borrowers whose loans are owned by Citi. Even if you send payments to Citi, the loan could be owned by someone else. If you're wondering how to determine the owner of your loan, simply contact your lender and ask them.

Happy Holidays to all of those lucky few who may get to stay in their homes for the next 30 days, but be sure to read between the lines; you just got a month to find a new place to live. Use that time wisely.

Joshua Dorkin is the founder and CEO of BiggerPockets.com, a real estate information, resource, and social networking portal.

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w_diago

I personally think that bankruptcy is much better than foreclosure. You seem to bounce back from bankruptcy a lot faster now days. They have secured credit cards and all kinds of ways to rebuild you credit. But foreclosure is more like an event that even with recovered credit, could keep you from buying another home.

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August 03 2013 at 6:01 AM Report abuse rate up rate down Reply