Wednesday, March 4, 2009

Citi, Treasury both release mortgage plans

The US Treasury this morning released new details about its Making Home Affordable Plan. The plan seeks to refinance or modify loans for between seven and nine million Americans. One interesting point provides cash incentives of up to $1,000 for three years to homeowners who enter and stay in the program.

The federal government is not the only one seeking to adjust loans. Citigroup announced yesterday an Unemployment Assist program. The plan reduces mortgage payments for the unemployed with the idea of making the homes similar in price to rental properties that foreclosed individuals often opt to enter. Citi had announced a one month foreclosure moratorium for mortgages on primary residences. That month is set to expire on March 12.

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