By RUTH SIMON
Citigroup Inc. announced Tuesday a new program aimed at addressing the latest challenge facing the mortgage industry: unemployed homeowners.
Under the program, Citigroup will temporarily lower mortgage payments to an average of $500 a month for certain borrowers who have recently lost their jobs and are at least 60 days behind on their mortgage payments. Borrowers will be allowed to make the lower payments for three months. Citigroup will waive interest and penalties during this period.
Well isn't that special!
Now, I wonder if anyone has pointed out to Citigroup, that is you are "unemployed?" You don't have an income. Therefore, it makes little difference what your payments are, if you have no income. Now in all honesty, I suppose that those who are currently drawing unemployment will potentially be helped by this move. And Citigroup will certainly benefit via some marginal cash flow. but this is not a cure or a fix, only a top gap measure of postponing the inevitable IMO.
Americans presently facing foreclosure, need jobs and job security. And three months of breathing space will certainly help, but it won't cure the present disease.