Citi to suspend foreclosures

WASHINGTON, D.C. - December 17, 2009

It's a temporary break for about 4,000 borrowers during the holiday season.

The New York-based bank will halt foreclosure sales and stop evicting homeowners from properties it has already seized.

The company projects it will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 that were due to receive foreclosure notices.

The suspension will run from Friday through Jan. 17.

It applies only to borrowers whose loans are owned by Citi.

Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.

The head of Citi's mortgage division says the company is working on "some long-term fundamental alternatives" to foreclosure, but has declined to be specific.

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