A pilot programs was launched by Citigroup yesterday to “allow distressed CitiMortgage borrowers to avoid foreclosure and remain in their homes for six months by agreeing to sign over their property deeds to CitiMortgage at the end of that period.” The Citi(R) Foreclosure Alternatives Program is also providing relocation assistance, but is only being release in limited states today.
An “expanded deed-in-lieu-of-foreclosure program” is the company's latest project to keep the foreclosure numbers down and encourage borrowers to take alternative routes when foreclosing on their homes. Texas, Florida, Illinois, Michigan, New Jersey and Ohio, will all be starting the program today.
"At CitiMortgage, we're committed to finding every solution possible to help families facing foreclosure. However, the reality is that not every homeowner has the financial ability to remain in their home," said Sanjiv Das, CEO of CitiMortgage. "The goal of the program is to help homeowners make a smooth transition into the next chapter of their lives. The Foreclosure Alternatives Program is another tool in our ongoing efforts to find creative, innovative ways to help our customers across a variety of difficult financial situations."
CitiMortgage plans on allowing borrowers to remain in their homes for 6 months. Once the 6 months is over, the property deed will be handed over to Citi. The borrowers can then receive a minimum of $1,000 of relocation assistance, counseling, as well as cover some monthly property expenses for those that can't afford otherwise, outside of utility payments.
“As part of the agreement, borrowers must maintain the property in its current condition and agree to bi-monthly meetings during which trained relocation professionals will help the borrower prepare for the next chapter of their lives.”
The foreclosure program is part of CitiMortgage's attempt to aid homeowner's financial hardships, but according to the most recent poll on whether customers feel their banks take the customer's side in disputes, Citi was ranked almost dead last.
Written by Amy Munday
Huliq.com
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