Citigroup To Help At-Risk Borrowers Stay In Homes

Look, we do not want anyone to lose their home. We applaud Citigroup for taking steps to curb the foreclosure rate particularly in the hardest hit areas of the housing collapse like Florida, California, Michigan, Ohio, Arizona and Indiana. But we also hope that this is not a short-term fix and that this will encourage more and more companies to encourage renting if housing or a mortgage is not feasible. There is nothing wrong with renting! Financial Institutions like Citigroup can do even more good by increasing exposure of the multi-family housing industry or even partnering with the apartment industry to showcase apartments during these tough times. Could a Citigroup even establish a savings program at a solid rate where renters rent for two years and then move into a new home? And, will Citigroup extend this same grace to apartment owners and/or management companies who have pledged millions of dollars to keep America renting?

More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.

Late last month, JPMorgan expanded its workout program to an estimated $70 billion in loans, which could aid as many as 400,000 customers. The New York-based bank has already modified about $40 billion in mortgages, helping 250,000 customers since early 2007.

JPMorgan also said it will not put any loans into foreclosure as it implements the expanded program over the next 90 days.

Bank of America, meanwhile, has said that starting Dec. 1, it will modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp. as part of an $8.4 billion legal settlement reached with state officials in early October.

Again, we applaud banks helping people stay in there homes, but let's not just throw money at the problem and hope for the best...let's come up with real solutions that can make a difference both short-term and long-term for renters and homeowners alike. This is a good start, but we must keep going to make lasting change.

Citigroup To Help At-Risk Borrowers Stay In Homes (TBO.com)