Citigroup Working To Prevent Foreclosures

New York, NY, Nov. 11, 2008-- Citigroup on Tuesday released details of a plan that it said will help mortgage borrowers remain in their homes.

The company said that under the Citi Homeowner Assistance program, it would preemptively contact 500,000 mortgage holders -- involving $20 billion of mortgage balances -- to try to ensure that they can pay their loans. It said it is focusing on borrowers who live in areas that are likely to face "extreme economic distress."

Citi also extended its moratorium on foreclosures, saying it won't begin or complete a foreclosure sale on a home on which it owns the mortgage if the borrower wants to stay in the home, which is his or her principal residence.

Citi said it will also need to be sure the borrower is working in good faith with the bank and has enough income for affordable mortgage payments.