Citigroup ramps up efforts to help borrowers stop foreclosure

08.25.09
By Timothy Jones

Foreclosure remains a very real threat for many American families - but what are lenders doing about it?

In the second quarter of 2009, Citigroup significantly increased its assistance to borrowers who were falling behind on their home loans, according to data released today by the bank.

Citi said that through its efforts, some 108,000 mortgage holders were able to stop foreclosure and stay in their homes.

This number is nearly 30 percent greater than the number of homeowners who were assisted by the bank during the first three months of the year and brings the total number of borrowers helped to 625,000.

As part of its foreclosure prevention efforts, Citi offers loan modifications, extensions, forbearances, reinstatements and payment plans.

Still, CNN Money reports that while Citi is ramping up its efforts to reach out to struggling borrowers, more of its customers are falling behind on paying their home loans.

The proportion of borrowers who were 90 days or more behind in mortgage loan payments increased from 3.9 percent to 4.7 percent during the first quarter of 2009, according to the news provider.

CitiMortgage CEO Sanjiv Das told CNN Money that the company's increased focus on helping people early in their struggles will lead to more borrowers staying in their homes.

"You keep plugging away at the early stages of delinquency and that's how you slow down the number of foreclosures," he explained.

According to the most recent data from RealtyTrac, foreclosure filings in the U.S. hit a new high in July, with 360,149 properties receiving a filing.

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Citigroup helped 30% more borrowers in the second quarter.