4,000 Citigroup Borrowers in Foreclosure Get 30-Day Reprieve

For about 4,000 Citigroup borrowers facing foreclosure, they won’t have to worry about being evicted over the holidays. Citigroup says it will suspend foreclosures (and evictions) for 30 days in a temporary break over the holiday season. This reprieve will go from tomorrow until Jan. 17.

Citi estimates approximately 2,000 homeowners with scheduled foreclosures and another 2,000 that were due to receive foreclosure notices will get a break. Lenders suspended foreclosures last winter, too, to give the loan modification plan (HAMP) a chance to get situated, but so far, the HAMP, HARP and TARP programs are not working as well or as quickly as planned.

According to USA TODAY, “Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a “reporting error” and said it will rise dramatically by year-end.”