CitiMortgage Debuts Foreclosure Alternative Pilot Program

12160_citigroup_logo CitiMortgage Debuts Foreclosure Alternative Pilot Program CitiMortgage has launched a foreclosure alternative pilot program in six states that allows eligible borrowers to stay in their homes by entering into a deed-for-lease home agreement and establishing a lease.

CitiMortgage's Home Rental Program will be managed by Carrington Capital Management LLC and Carrington Mortgage Services LLC. Under the program, the eligible borrower transfers ownership of the property to a vehicle established by Carrington Capital and its joint venture partner, Oaktree Capital Management LP, acting as investment manager for certain investment funds. Carrington will assume responsibility for servicing these loans and will offer the program to qualified borrowers.

To participate in the program, candidates must be unable or ineligible to receive an affordable loan modification but have the resources to make monthly rent payments. Participants must also have a loan in the pilot portfolio that is serviced by Carrington, occupy the property in the question, owe more than their home is worth, and be delinquent on their mortgage for 120 days

To implement the program, CitiMortgage has transferred the ownership of loans in its portfolio to the Carrington/Oaktree partnership through the sale of $158 million in mortgages.

‘CitiMortgage remains committed to finding solutions that can ease the burdens of distressed homeowners,’ says Sanjiv Das, CEO of CitiMortgage. ‘The Home Rental Program offers eligible borrowers an option to remain in their homes while avoiding the disruption of foreclosure.’


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