Citi: Workouts Outnumbered Foreclosures by 10 to 1 in First Quarter

May 12, 2009 No Comments »

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Troubled bank and mortgage lender Citibank said today that loss mitigation efforts exceeded completed foreclosures by 10-to-1 during the first quarter.

Additionally, the bank said it helped more than 80,000 borrowers avoid foreclosure in the first quarter alone.

Since the housing crisis began in 2007, the New York-based bank has worked with 520,000 homeowners to avoid “potential foreclosure” on mortgages worth a combined $50 billion.

However, it’s worth noting that Citi had a foreclosure moratorium in place for at least a month during the quarter, if not more, so that could certainly skew the numbers.

At the same time, their preemptive “Citi Homeowner Assistance” loss mitigation program launched back in November may have helped borrowers on the brink avoid foreclosure.

In early March, the bank also launched its so-called “Homeowner Unemployment Assist” program, aimed at aiding recently unemployed borrowers.

Citi has pledged another $1 billion to help borrowers refinance their existing mortgages to take advantage of the low mortgage rates on offer, though that’s probably doing the company more good than the borrowers.

The company has also expanded the eligibility of forbearance programs for delinquent credit card holders, and is currently serving 1.3 million customers through a variety of programs.

Those credit cards could be even more trouble than the mortgages.

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