Citi Bank help the distressed home owners

A New Citi ProActive Short Sale Program

In the Citi program, which launched last week, in-house portfolio loans were reviewed to identify homeowners who would be ideal Short Sale candidates.

These borrowers are receiving letters outlining their Short Sale options and including the names of three qualified RE/MAX Associates who could assist them. The decision on whether to contact one of the agents rests with the homeowners. So far, Citi has identified over 40,000 properties to be included in the program, with several thousand more properties expected to be added each month.

In a key element of the program, the Citi Short Sale team is authorized to set sales prices and accept offers. It will attempt to respond to offers within 72 hours. Upon a successful Short Sale closing, homeowners could receive a cash incentive for moving expenses, and may have their outstanding debt forgiven.

To increase their chances of being included in the mailings, RE/MAX Associates should have the CDPE, SFR or Five Star Training and indicate this information on their Web Roster profiles.

Fannie Mae Deed-in-Lieu Plus Pilot

The Fannie Mae program began in December 2010 and, as a pilot, is much smaller in scope, at least initially. It assists Fannie Mae borrowers who are in danger of foreclosure by offering Deed-in-Lieu Agreements. Chicago-based HEART Financial Services, acting as the asset manager, assigned 1,200 properties in 18 states to nearly 300 RE/MAX agents already working Fannie REOs. If the pilot is a success, Fannie could release thousands of additional properties to RE/MAX agents.

If homeowners express interest in learning about their options, HEART assigns a RE/MAX agent, who makes contact and explains the details of the Deed-in-Lieu program. Upon Fannie's acceptance of the Deed-in-Lieu, the agent receives the listing and markets the property like any other Fannie REO.

When Fannie accepts the signed DIL Agreement, homeowners have 30 days rent-free to prepare for a move. If they relocate within the 30-day period and leave the property in "broom-swept clean" condition, they receive a $3,500 moving allowance and their primary mortgage debt is forgiven.

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