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Citigroup (C) begins a pilot program allowing distressed homeonwners to transfer ownership for a...

Citigroup (C) begins a pilot program allowing distressed homeonwners to transfer ownership for a short period and become renters (with rental payment less than mortgage payment). Win-win? The homeowner gets to stay in their house and Citi - if things don't work out - has the title without having to go through foreclosure? (PR)
Comments (9)
  • Vlad77
    , contributor
    Comments (131) | Send Message
     
    Win win for the banks
    8 Aug 2012, 05:00 PM Reply Like
  • SHANE06
    , contributor
    Comments (26) | Send Message
     
    Citi should be complimented for this innovative approach . Restores my faith in the bank ...it is innovations like this that made them a top global financial institution ,and which can in time put them back at the top of the pack. I am holding my shares for the long term.
    8 Aug 2012, 06:01 PM Reply Like
  • kitchenboy
    , contributor
    Comments (29) | Send Message
     
    neighbor going thru this, bank lets him stay and pay rent but will not renegotiate the loan. Only one winning is the bank.
    8 Aug 2012, 09:17 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (886) | Send Message
     
    Hey man... nobody made your neighbor take out a loan on a house he couldn't afford, right? He should be thankful he gets to keep whatever equity he has in the property while still being able to use the place as a residence. Once someone gets to the point of not being able to make good on their mutually agreed upon financial obligations (that they willingly signed on for) the thought of "winning" in that situation should be the last thing on their minds.

     

    Frankly, this idea is so simple it's brilliant. It's amazing no one thought of this before.
    8 Aug 2012, 10:50 PM Reply Like
  • kitchenboy
    , contributor
    Comments (29) | Send Message
     
    lived in the house for 30 yrs, used as collateral for his constructionn business. The downturn has pinched him hard then he got hurt and could not work for 4 months. Could not get caught back up.
    9 Aug 2012, 06:38 AM Reply Like
  • RyanH
    , contributor
    Comments (126) | Send Message
     
    Leverage is not to be taken lightly. Your friend is a shining example of this. Should have thought twice before leveraging his home to expand a business. Personally I would not do it, but if you do you have to be prepared to lose.
    10 Aug 2012, 06:00 PM Reply Like
  • aal828aal
    , contributor
    Comments (2) | Send Message
     
    Creative solution! Only happen in the private sector!
    8 Aug 2012, 10:33 PM Reply Like
  • Vipertom
    , contributor
    Comments (169) | Send Message
     
    Another option should be to reduce principal in exchange for a percentage of the future equity in the house. i.e., a 25% reduction in principal in exchange for 25% of any appreciation that may occur. Only for those who are current on their loan. No Obama giveaways.
    9 Aug 2012, 12:29 AM Reply Like
  • MexCom
    , contributor
    Comments (3053) | Send Message
     
    Excellent. Some will still not want to pay anything and this will allow the bank to expedite foreclosure and move the freeloaders out into the street, sell the property and get these non-performing assets off of the balance sheet. The era of "stay in your home for free" is coming to an end. Congratz to Citicorp for this innovation and boost to the economy with the increased confidence that we are getting out of this mortgage mess after all.
    9 Aug 2012, 06:38 AM Reply Like
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