Citigroup Inc.’s mortgage unit is letting delinquent borrowers stay in their homes for free if they hand over their titles.
In a news release today, CitiMortgage Inc. unveiled its new Foreclosure Alternatives Program. The program is available on owner-occupied loans owned by CitiMortgage for borrowers who are at least 90 days delinquent, were denied a modification and were unable to utilize a short sale.
The pilot program will initially be launched in Florida, Illinois, Michigan, New Jersey, Ohio and Texas. The success of the pilot program will determine whether the O’Fallon, Mo.-based lender will go nationwide with it.
Beginning tomorrow, borrowers who face foreclosure and cannot afford their mortgage payments can stay in their properties for six months if they agree to transfer the property deed to CitiMortgage at the end of the six months.
Borrowers will be provided with $1,000 in relocation assistance and be required to attend three relocation counseling sessions.
But borrowers will be responsible for utilities expenses and property maintenance. Other costs, such as homeowner’s association dues and escrow fees, will be determined case-by-case based on the borrower’s financial circumstances.
