The deal would allow the bank to avoid the cost of foreclosure and evicting homeowners -- and some maintenance costs. In exchange, Citigroup would allow delinquent homeowners who did not qualify or who turned down relief to live in their homes for six months for free, The Washington Post reported Thursday.
"This is a graceful way to move on with their lives instead of being foreclosed on and being evicted from their homes," said Sanjiv Das, chief executive of CitiMortgage.
The program is in part an acknowledgment that programs to forestall or prevent the flood of foreclosures have consistently failed to live up to expectations.
Banks balked at rewriting loans to reduce profits and home owners were often reluctant to participate if it meant preventing foreclosure on a home that was not worth what was owed on the loan.
Copyright 2010 United Press International, Inc. (UPI).
We'll keep living in this
We'll keep living in this situation... a relief, than a change, a relief, a change... This the scenario of our crisis and something must be done to stop it once at all.
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