According to the Associated Press, Citigroup will be trading a 6 month stay in your home for the deed. The article is here. The former owners will be required to keep the utilities on.
This is obviously cheaper for Citigroup than a full foreclosure with an eviction. It may also mean cleaner and more well kept houses for resale, as the former owners may come to see the bank as a partner in the move rather than a cold and heartless bank who wants to throw them on the street. To further that image, Citi is offering moving counseling.
Fannie Mae has a similar program, but rents the house back to the people at "market rates". I would be curious to see what Fannie considers market rates. Here in the High Desert, rents have been falling from $1.00+/sf to $0.50/sf is some cases. There are lots of move in specials, too.
I was unable to get a loan modification, and the bank has offered a $2000.00 cash-for-keys. My significant other and I are going to accept, and move into one of the vacant rentals, rather than fight the bank for 6 months and then get an eviction in addition to the foreclosure. Luckily her credit is good, and her name is not on the deed.
2 years ago