The bank has decided to help stop foreclosure homes growth following President Barack Obama's call for mortgage lenders to modify loans to help homeowners avoid losing their properties to foreclosure.

Foreclosure homes rates in the United States declined by 25.7 percent to 72,694 in January 2009 from December 2008's 97,841. California still leads the top 10 states with the highest number of foreclosure homes, with 14,351 in January compared to 20,952 the previous month.

Nationwide, filings for pre-foreclosure homes dropped by 12 percent from 190,467 in December to 166,860 in January.

Meanwhile, Citigroup's Homeowner Unemployment Assist mortgage program is the latest attempt of the bank to remove itself from a dire financial situation brought about by the economic crisis. The U.S. government provided Citigroup with emergency bailout fund of $25 billion in exchange for about 36 percent equity share in the bank.

Unemployed homeowners who do not want their distressed properties to be added to the growing list of foreclosure homes may quality for Citibank's program provided that they are overdue on their payments or in foreclosure for more than 60 days and they have the capacity to pay the lowered loan amount.

Also, borrowers must have principal loans that are owned and handled by CitiMortgage Inc. These loans must conform to limits established by government-sponsored enterprises. Additionally, the house under threat of foreclosure must be the borrower's primary residence and the homeowner should meet all guaranty and insurers requirements.

CitiMortgage Chief Executive Officer Sanjiv Das explained that the bank's assistance program is designed to help distressed homeowners remain in their properties and in their neighborhoods while they try to improve their plight.

Those who availed of the assistance program and were unable to find employment after three months may have their mortgages reviewed for a payment option that will still help them avoid foreclosure.

Meanwhile, for homeowners who were able to find employment within three months, they have an option to resume paying the original loan amount or avail of long-term mortgage modification.

Citigroup's program is part of its current Citi Homeowner Assistance which attempts to help distressed borrowers avoid foreclosure.