New Help for Homeowners Risking Foreclosure

$20 billion in loans may be modified

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    One the country's largest banks says it will reach out to 500,000 distressed home owners to modify loans.

    One the country's largest banks announced it will reach out to 500,000 distressed home owners to modify loans. 

    Citigroup is the latest to proactively halt foreclosures and modify loans.  In a statement, the company said $20 billion dollars in loans could be modified

    "The real problem in the U.S. now is increasing unemployment," CitiMortgage Chief Executive Sanjiv Das told the Wall Street Journal. "We are finding that people across the board need help."

    New Help for Homeowners Risking Foreclosure

    [DGO] New Help for Homeowners Risking Foreclosure
    One the country's largest banks says it will reach out to 500,000 distressed home owners to modify loans in order to avoid foreclosure.

    Vino Pajanor of the Housing Opportunities Collaborative, which conducts free home clinics around San Diego County, said Citigroup's plan is the best yet. 

    "It reaches out to homeowners who aren't in default yet, but could be facing trouble," he said. 

    Pajanor said it is an encouraging trend, with JP Morgan Chase making a similar announcement earlier this month.  Home loan counselors in his group have seen more lenders willing to modify mortgages, even for people who haven't defaulted on their loans.

    Homeowners having difficulty paying their mortgage can particpate in a free home loan clinic this Saturday, put on by the Housing Opportunities Collaborative.  To take part, register at Housing Collaborative.org.