CitiMortgage is piloting a new program that will allow borrowers to stay in their homes for up to six months in exchange for the deed to their home. The program, currently being offered to homeowners in Texas, Florida, Illinois, Michigan, New Jersey and Ohio, includes:
- Up to $1,000 to help with relocation expenses
- Bi-monthly relocation counseling
- Payment of some monthly expenses which could include HOA fees.
Homeowners who want to enter the Citi Foreclosure Alternatives Program must first be considered for a loan modification - the lender will review the loan's terms, interest rate, monthly payment or term, and see if an adjustment would help the homeowner make the mortgage payments.
If the homeowner does not qualify for a permanent modification. CitiMortgage will then work with the homeowner to explore the possibility of a "short sale" in which the lender accepts less than the full balance due on the loan as part of a deal in which the homeowner cooperates with the lender to obtain a quick sale.
If a short sale is not feasible, the homeowner can then be considered for the deed-in-lieu program. In addition to completing the above, the homeowner must meet other eligibility criteria that includes:
- Holding first mortgages with a clear title owned by CitiMortgage
- Occupy the property as their primary residence
- Be at least 90 days delinquent on their mortgage payment
CitiMortgage has estimated that the pilot program will help over $1,000 families and, if the program is a success, the company may expand it to other parts of the US.
Homeowners who would like more information about the program can call 866-781-0322 or visit www.citimortgage.com.
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