Citi Halts Gulf Coast Foreclosures
Citigroup Inc., the recipient of a $45 billion taxpayer bailout, will suspend foreclosures in coastal areas hit by the BP oil spill in the Gulf of Mexico.
The three-month foreclosure moratorium will apply to loans owned by the bank's mortgage unit, not debt that Citigroup services for other lenders or investors. Homeowners within about 25 miles of the coast will be covered and evictions will be halted if properties have already been seized.
Following suit, Fannie Mae, the government-supported mortgage company, reminded the companies that manage its loans that they can immediately suspend or reduce payments for borrowers for at least three months given the loss of income occasioned by the oil spill.
Citigroup's move will protect about 1,200 homeowners.