We got word that Citigroup will let delinquent homeowners who don’t qualify for any federal relief program stay in their homes for six months as long as they turn over the keys and leave the property in good condition when the grace period expires.
In addition to having a “heart”, it makes sense for the banks because in their eyes it makes more sense to offer some extra time for borrowers to regroup instead of forcing them out only to have the homeowners thrash the house, thus costing the bank so much more in repair costs. We think that others banks will get a clue and follow suit.
The bank estimates that more than 20,000 borrowers in hard-hit states like Michigan, Ohio, Florida, Illinois, Texas, and New Jersey could be eligible. We’re curious why those significant numbers didn’t include California. We know that Citi has REOs here in the Bay Area but maybe there aren’t as many as we thought.