Citi Promises No Foreclosures Or Evictions For One Month

About 4,000 borrowers who were either scheduled to have foreclosure sales or who were going to receive foreclosure notices will be left alone until January 17th, according to CNN.

“We hope that with this suspension we can make the holidays a little less stressful for our customers who are going through a very difficult time,” said Sanjiv Das, chief executive of CitiMortgage, in a statement.

“Citi’s holiday treat: No foreclosures for a month” [CNN]

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  1. daddy_froglegs says:

    See? They DO have a heart! There IS a Santa Claus! This just goes to show, Citi cares about “the little people” and not the almighty dollar.

    But come Jan 17th, you’re out on your ass deadbeat.

  2. axhandler1 says:

    This is certainly a nice change from the usual stories about banks and foreclosures.

  3. Oranges w/ Cheese says:

    Oh how kind. Hopefully it can give these folks a little extra boost in timing to get everything together. If not, sucks to be them come January because you know the company won’t have any leniency then >_

  4. jtheletter says:

    Thank you Citi for “being a fucking person”.

    • supercereal says:

      You say that like it’s Citi’s fault that people are having their homes foreclosed on…

      • stevejust says:

        It IS Citibank’s fault?

        How do you assign blame? There’s about three parties you can blame in this situation.

        1) The homeowner who can’t afford the house. This is clearly who you’re choosing to blame the problem on. That’s idiotic, because of the other parties involved. See below.

        2) The loan originator who offered a loan to someone who couldn’t pay the loan back. Sure, this party may have lied, cheated or misrepresented things. Sure this party might have known that the person could pay back the loan. But this person wouldn’t have done the loan if they didn’t know they could sell it to Citibank, because then it would’ve been THEIR money on the line that wasn’t getting paid back, and they wouldn’t have done the loan. In some cases, Citibank, especially CitiFinancial to the low income, subprime market, was the originator.

        3) Finally, you could assign the blame to Citibank, who was dumb enough to take on the loan as the counter party. Since it was ultimately their money, and they employ minions of very smart people with finance degrees from Harvard and Yale and quant analyzers from MIT and Stanford, etc.,. and clearly have played the historical role of deciding who is and is not credit worthy, people began to think that if they qualified for the loan, that meant that these smart people who were willing to give them the money figured out that they could, in fact, pay back the loan. They thought that a bank surely wouldn’t be stupid enough to give them the money if the bank hadn’t figured out they could theoretically pay it back.

        But the banks weren’t doing that anymore. They were just giving $720,000 home loans to, among others, a migrant tomato farm worker in California’s central valley earning 14,000 a year, and $500,000 loans to janitors in San Diego.

        Whose fault is this? The bank whose money it is, or the janitor’s?

  5. VOIDMunashii says:

    While I’m happy to see them acting like a person, it is clearly just a ploy to get mentioned in the media in a positive light for once.

    • Anonymously says:

      Or maybe they’re shorter-staffed because of the holidays and couldn’t process those 4000 cases anyway.

      • tbax929 says:

        This is the sinister view I immediately took after reading the article.

      • Wireless Joe says:

        First thing I thought of, or that local Sheriff’s offices were understaffed for the holidays to help with enforcement.

      • stevejust says:

        This comment.

        Nothing gets done around this time of year. People including their own staff, sherriffs, judges, etc.,. go on vacation, etc.,. Even if they wanted to pull off 4,000 evictions, they couldn’t. So they’re reaching for some good publicity by trying to spin their inability to do it into them being “human.” If people can’t see this, I fear for humanity.

        This is not me being jaded. This is simply straight up reality.

  6. Blueskylaw says:

    Citi is busy with their 5.4 billion share placement to raise $17 billion to get out of TARP restrictions. Without TARP restrictions they can start collecting huge bonuses again, so evicting thousands of tenants would impact their end of year performance and also their bonuses.

    Once again chasing short term gain instead of long term profits, though the evicted homeowners might not see it that way.

  7. diasdiem says:

    Their heart grew three sizes. Up next: Carving the roast beast.

  8. haoshufu says:

    And then what? Resume after Jan 17? People are still out on the street if Citi does not change their mind, just that they will have a shelter for the Christmas?

  9. thisistobehelpful says:

    So they passed the be a fucking person test for at least the holiday season.

  10. H3ion says:

    Why does this sound like the governor giving a 30-day delay of execution just before the needle goes into the arm? If Citi really wanted to do something useful, they could spend the next 30 days restructuring these mortgages so that the people would still have a roof next December 17.

    • Noah says:

      What do you think Congress did by creating the HAMP plan? We are simply delaying the inevitable decline of the housing market. Also, if you look at the HAMP plan, all it does is push more of the balance on the end of the mortgage. In the end, you are paying a ton more to keep your house. If I was a homeowner, I’d just take the foreclosure and move on. I’d rather take 7 years of bad credit over losing $200K any day.

      People don’t understand that we need to let the market work itself out and if that means that people who signed up for mortgages they couldn’t afford have to lose their house, so be it. The truth is that the banks have lost far more than homeowners in the last year.

  11. cynical_reincarnation says:

    Forward to late January…

    Most foreclosures in recorded history!

    • Sure I could agree with you, but then we'd BOTH be wrong. says:

      Bookmark this post – we may come back to it next month

  12. admiral_stabbin says:

    I’m glad the interest rate on my mortgage helps them accomplish such generous goals.

    Seriously, thanks for being an f-ing person, Citi. It makes me feel ever so slightly less terrible for paying you as much interest as I have over the past 2.5 years.

  13. TailsToo says:

    Hmm.. right after the President blasts them for being a-holes.

    If they really want to help, how about finding a way to work with these people to keep their homes rather than act like giving them an extra month to sweat is such a gift?

  14. Geotpf says:

    There’s a really easy way to avoid being foreclosed upon-pay your mortgage bill!

    It’s really that simple.

    If you don’t pay, why would you be surprised that they foreclose? As it is, the foreclosure process currently frequently takes a full year before one stops paying and when the sheriff department is throwing your butt out, sometimes longer. Consider the year of free rent as a Christmas gift from the bank.

  15. NewsMuncher says:

    The Unfoolable People speak.

  16. jdmba says:

    The posts which talk about the poor people are somewhat offputting to those of us who actually pay our mortgage. I am not trolling (in fact, I am a very long time poster), but please think about it. If you paid your credit card bills every month would you like to hear about people who didn’t bother to pay, bought a ton of stuff, and then the credit card company decided to forgive their debt? You would feel like a moron.

    That’s how *I* feel about anyone getting a loan modification. If I would have just irresponsibly gotten a 0% down loan for 2% interest floating, and paid $300 a month, I would now be better off than doing the right thing of getting a fixed mortgage and paying the bills.

    Again, these are not countrywide people or eloans or whatever may have been fraudulent … this is Citibank; and I would REALLY like to see some social responsibility out there.

  17. srh says:

    I am baffled by the mentality here, that somehow Citi has an obligation not to evict people who are stealing from them.

    WTF.

    They are a business, not a charity. But they won’t be in business much longer if they start letting people stop paying their bills, because they bought stuff they couldn’t afford.

    Geez, call me a hardass or something, but if I were them I’d be evicting deadbeats every business day up to and including Christmas if possible. If you want to live someplace without paying for it, I’m sure the local homeless shelter can make room for you.

    • Snarkysnake says:

      Right anger ,wrong target. Yes , some of these people are deadbeats. This will give them another 30 days to pull the wires out of the walls ,stop up the loo and generally trash the place before Citi gets its house back. On the other hand…

      This looks like political cover for a company that has been no less rapacious itself in stealing from us lowly taxpayers thanks to a mentality in Washington that deems them ” Too Big To Fail “. I agree with the earlier poster that opined that getting from under the TARP restrictions on obscene bonuses is part of the endgame here, but I’m more afraid that it also means that the mad scientists deep inside Citi have found another bubble that they can bet our money on and (if it goes well) keep the profits. If it goes boom (more likely), we get to see the sequel to this episode (” TARP II , Return of the money suckers ” ).

  18. SJPadbury says:

    The reality probably is they’ve been so busy foreclosing, they haven’t let any of their employees take their vacation time, so they just have everyone take off at the same time, shut down, and get the good press for suspending foreclosures for a month.

  19. SJPadbury says:

    The reality probably is they’ve been so busy foreclosing, they haven’t let any of their employees take their vacation time, so they just have everyone take off at the same time, shut down, and get the good press for suspending foreclosures for a month.

  20. SJPadbury says:

    The reality probably is they’ve been so busy foreclosing, they haven’t let any of their employees take their vacation time, so they just have everyone take off at the same time, shut down, and get the good press for suspending foreclosures for a month.

  21. Fred E. says:

    The cynical voice in me says they decided they just couldn’t afford the bad publicity right now of throwing families out on the streets on Christmas Eve.

  22. Deezul_AwT says:

    When do we get to punch the people in the face who knew better than to buy a house they couldn’t afford, then got to live in it for an extra month because they can’t pay? Can I do that after Christmas too?

    Excuse me for buying a house I can afford when I bought it, that now has lost 30% of it’s value. Can I skip a payment for free?

    • BridgetPentheus says:

      exactly, i bought a house i could afford, put down a large down payment and now that I need to move overseas with my husband I can’t sell it for anything, sorry i was responsible, can i now skip a couple of months of payment?

    • Bob Lu says:

      That is exactly what you should do. Just walk away . Generally a bank won’t even bother to ask you what’s going on for three to four months. The actual foreclosure process takes even longer. Keep your monthly payment in a glass jar. By the time you are kicked out of the not-yours-anymore-but-it-was-never-really-yours-anyway house, you will have a good stash of cash. Go rent a place. Your credit will be so trashed that you won’t even be able to pass the credit check the rental company will be asking for, but now you show them THE JAR, tell them you can pay a year worth of rental in advance. No rental company will refuse you.

  23. Bob Lu says:

    It can mean only one thing:
    things are so bad for Citi that they can’t handle more foreclosures.

    Here comes the second wave.

  24. kompeitou says:

    I think this is just a way for Citibank to kick the foreclosure (take a loss) can down the road for another month… another month they dont have to mark to market the real value of the loan/house that is on their books. All in the guise of ‘christmas spirit’.

    Citibank = Mr. Potter

    Citibank == George Bailey

  25. technologiq says:

    This is not a good thing. Its good timing for Citi looking for positive publicity but thats about it.

    This is a very, very bad sign. This doesn’t bode well for the real estate market early next year.