Citigroup to help at-risk borrowers stay in homes

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Help for struggling homeowners

NEW YORK -- Citigroup is imposing a moratorium on most foreclosures.

Citi is targeting homeowners in geographic areas with higher-than-average unemployment and foreclosure rates, primarily in Michigan, Arizona, California, Florida, Ohio and Indiana.

It's part of a series of initiatives aimed at helping at-risk borrowers remain in their homes. It makes Citi the latest big bank to announce sweeping efforts to try to curtail losses from souring mortgages.

Citi says it it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home. The home needs to be the borrower's principal residence, the homeowner would have to be working in good faith with Citi and have sufficient income to make affordable mortgage payments.

(Copyright 2008 by The Associated Press. All Rights Reserved.)