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The power of a press release. That is what was exhibited by the announcement of the suspension of foreclosure proceedings by Citigroup today. And good for them.

But now it is time for the details.

The suspensions and evictions are for only 30 days, once that time passes, out they go. So yes, it is nice to not evict people over the holidays, but Citigroup would not have done so anyway. Too easy a story for the press to jump on and lots of negative publicity.

The suspension does not affect mortgages Citigroup manages. So if your mortgage gets paid to Citigroup but is owned by someone else, too bad. You could get the ax if you are facing foreclosure.

Only 4,000 people are going to be affected. The story is front and center in the news today that Citigroup is suspending foreclosures. Nothing about how few are affected and how short the durations. Again, one amazing publicity coup.

So PR firm for Citigroup, great job. But to the consumer, nothing much is going to change unless you are one of 4,000 families. And even then the clock is still ticking.

The suspension will run from Friday through Jan. 17 and only includes 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 company projects this move will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 due to receive foreclosure notices.

The head of Citi’s mortgage division says the company is working on “some long-term fundamental alternatives” but would not specify. via WKOW

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