More than 11 million Americans are out work — and perhaps three million more could join them before 2009 expires.
In fact, the national unemployment rate is at its highest level (7.6 percent) since 1992. And it could surge more than a full point in 12 months or less to highs that have not been recorded in more than 25 years.
This harsh reality is a major problem for many reasons — people who can’t find work can not earn a living. Perhaps more alarming, many of these individuals are homeowners who are either having trouble making their monthly mortgage payments or will very soon of their situations do not improve.
And when homeowners don’t pay their mortgages on time they run the risk of falling into foreclosure.
It’s a slippery slope and a primary reason foreclosures have increased across the board in the last year and could continue to rise in the future.
CitiMortgage, which is the major mortgage lending arm of Citigroup, has apparently picked up on this unfortunate trend and is doing something about it, announcing today that “newly laid-off borrowers” will be allowed to “pay a substantially reduced mortgage, around $500 a month, for three months while they hunt for a new job,” according to Forbes.com.
However, only mortgages below the $417,500 threshold qualify. And after the 90 days are up, the article indicates that unemployed borrowers still in the program will be dealt with on a “case by case basis.” In addition, those in the program who find work before the three-month mark could be eligible for a long-term loan modification.
Therefore, if you are unemployed and struggling to satisfy your CitiMortgage loan responsibilities it would behoove you to give them a call and enroll in the program. It could make a major difference and provide you with valuable time while you get back on your feet.
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