Trying to repair an image that is pretty bad right now, Citi has decided
not to pursue foreclosures for the Christmas holidays. But, because life
does go on, they will start back up again in January. Citi estimates this
will benefit about 2,000 homeowners, albeit temporarily. What if Citi
got some real Christmas cheer and looked seriously at some of the 100,000
loan modification requests they have received? That would be something.
Unfortunately, Citi has only modified 270 of those loans. Think about
that–a 2.7% loan modification rate. That is pretty bad and brings
us back to the point discussed on this blog many times: the only way lenders
will make serious changes to their loan modification process is if Congress
allows mortgages to be modified in Chapter 13 bankruptcy. Will it happen?
Only time will tell.