Citigroup says it will suspend some foreclosures in gulf region

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Citigroup said Wednesday it would halt foreclosures and cease evictions for three months on some homeowners in the coastal areas hit by the Gulf of Mexico oil spill.

The three-month suspension would be in effect starting Thursday through Sept. 17 and apply to qualifying borrowers with first mortgage loans owned by CitiMortgage.

The bank warned in a release that it does not own all of the loans it “services,” or all loans on which it collects payments, but said it will try and help as many borrowers as it can. The company said it will extend the relief to borrowers living in ZIP codes within approximately 25 miles of areas affected by the crisis.

-- Alejandro Lazo