Citi To Take Deeds & Allow Owners to Stay 6 Months

[Ted Akers]

CitiMortgage just announced it will pilot a new Foreclosure Alternatives Program that allows distressed borrowers to stay in their homes an additional six months in exchange for the deed. Beginning Feb. 12, 2010, the program will launch in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. Citi expects 1,000 families to participate in the program. Citi will also allocate a minimum $1,000 to borrowers to assist with relocation.

While a worthy thought, is it just delaying a flood of REO’s into later this year, around the same time we expect a wave of Option ARM recasts which are very likely short sale or REO candidates???

The full article can be seen at the following link:
http://www.housingwire.com/2010/02/11/citi-pilots-new-foreclosure-alternative-across-6-states/

:roll: