CitiMortgage Offers Foreclosure Alternatives Program
CitiMortgage is giving some homeowners struggling with mortgage loans a break. The mortgage lender is allowing distressed homeowners in six states to remain in their homes rather than face foreclosure.
Foreclosure Alternatives Program
CitiMortgage is offering the deed-in-lieu program to people who currently have a home loan through CitiMortgage and live in Texas, Florida, Michigan, Illinois, New Jersey, and Ohio. They must be at least 90 days delinquent on mortgages to qualify for help.
The distressed homeowners will be able to remain in their homes for six months while figuring out where to move. After six months, they must agree to sign over their property deeds to the mortgage lender.
Sanjiv Das, CEO of CitiMortgage, said in a statement, “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. The goal of the program is to help homeowners make a smooth transition into the next chapter of their lives.”
Mortgage Lender Gives Relocation Help
As part of the agreement, CitiMortgage provides relocation counseling and at least $1,000 to help borrowers move to other housing.
Some homeowners may receive assistance with certain housing expenses if they can’t afford them. Although borrowers are responsible for utility bills, the mortgage lender may help with other costs, such as homeowner’s association dues and escrow fees.
Keeping Homes from Being Trashed
The assistance program also requires homeowners to maintain homes in their current condition. “Once the owner moves, we get the property that’s in better condition, so we can immediately market it,” Mark Rodgers, Citigroup’s director of public affairs, told the South Florida Business Journal. ”It’s much more likely to sell quickly in good condition than in bad condition.”
Mortgage Modification or Short Sale
Before a distressed homeowner is helped through a deed-in-lieu of foreclosure, the lender evaluates the situation to see if a mortgage modification can help. Borrowers who don’t qualify for a mortgage loan modification may get approval for a short sale. That allows them to sell for less than they owe on a home loan.
Only when a homeowner can’t be helped with a mortage loan modification or short sale are they considered for the deed-in-lieu program.
Tags: home loan, mortgage, mortgage lender, mortgage loan, mortgages
