New Citi Program Lets Distressed Borrowers Temporarily Stay in Home

CitiMortgage is offering its distressed borrowers an expanded deed-in-lieu-of-foreclosure option that will allow them to stay in their home for six months if they agree to sign off their property rights to the bank at the end of that period. Initially the Citi Foreclosure Alternative Program will be tested in Texas, Florida, Illinois, Michigan, New Jersey and Ohio as of Feb. 12. The program is a pilot initiative that also will offer a minimum of $1,000 in relocation assistance to facilitate these borrowers' eventual transition to another residence. Relocation counseling by trained professionals will assist with monthly budgeting advice as necessary, Citi said. Executives said it is the newest addition to a series of similar initiatives Citi has been introducing since the foreclosure crisis began. To qualify borrowers first must be eligible for a permanent loan modification. If not, a short-sale option will be considered.