The Real Deal Miami

Florida homeowners to get softer foreclosure option

February 12, 2010 11:29AM

Citigroup, a lender with plenty of distressed mortgages on its books,
has unveiled a pilot program for homeowners facing foreclosure that would
keep them in their homes without making mortgage payments for up to
six months if they make the bank the property owner. The program would give
people who face eviction a place to live but provides an incentive to
leave properties in good condition. CitiMortgage is trying the
program out in Florida, Texas, Illinois, Michigan, New
Jersey and Ohio. Citi’s move shows that it is bracing for the
inevitable fact that millions of borrowers will lose the struggle with
foreclosure over the next several years, despite federal assistance
programs like the Obama administration’s Home Affordable Modification
Program, or HAMP. That has had limited success and the private sector
can play an important role, said Sanjiv Das, chief executive of
CitiMortgage. [WSJ] and [Miami Herald]