CitiMortgage Launches New Program to Help Struggling Homeowners
This Friday, CitiMortgage, a division of Citigroup and one of the largest mortgage servicers in the country, is launching a new program in New Jersey, Texas, Florida, Illinois and Ohio designed to help homeowners who are struggling with their mortgage payments and facing foreclosure.
Under the new program, Citi will allow delinquent mortgage holders to stay in their homes for up to six months in exchange for a "deed in lieu" of foreclosure. Citi will also forgive any "deficiency balance" between what the borrower owes on the mortgage and the current market value of their home. This program will make it easier for the homeowner to make plans for a new move and at the same time, will eliminate the legal and administrative costs of the foreclosure process for CitiMortgage.
To be eligible for the program, homeowners must reside in their homes, have their first mortgage with Citi, no second mortgage with an outside lender, and be at least three months behind in their mortgage payments. Citi's program will also provide up to $1000 in moving expenses and offer relocation counseling. It could be an good alternative for people who are thinking about just "walking away" from their homes. For more program details visit CitiMortgage.com.