One of the nation's largest mortgage servicers, CitiMortgage, launched a pilot program designed to ease the pain of some homeowners heading for foreclosure.

Borrowers can stay in their homes for up to six months, if they agree to then hand over the deed to the lender, instead of borrowers falling further and further behind on their mortgages, leading to an eventual foreclosure sale.

Having missed at least three monthly payments, the borrowers the program targets are already seriously delinquent, and are well on the road to losing their homes.

The lender saves considerable expenses, especially on legal fees by giving the house back to the lender, in a transaction called a deed-in-lieu of foreclosure.

CitiMortgage, a division of Citigroup (C, Fortune 500), will grant quite generous terms to participants, because of those savings.

For borrowers, the biggest advantage is the time it gives them to plan their next moves.

The program promises to make the process more orderly and provides benefits for both lender and borrowers, while borrowers still lose their homes.

In order to help with relocation expenses, a pledge is included from CitiMortgage that it will pay the borrowers a minimum of $1,000.

Also, while the borrowers remain in their homes, Citi will provide relocation counseling and may cover some monthly property expenses, if Citi determines the borrowers can't afford the expenses.

Posted by Tamborrel Bulox Team on
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