As I walked into the office this morning I saw Robert sitting at his desk. He was staring at his computer with his cup of coffee in his ever so desirable mug with a picture of his family on it. I approached Robert and asked how his morning is going, he said it was find and told me that there was news regarding told CitiMortgage. He said CitiMortgage told the public about the launch of their Home Rental Program, which is a system with the purpose to give an alternative to foreclosure and perhaps give eligible borrowers to stay in their houses.
Carrington Capital Management LLC is managing the system and CitiMortgage and Carrington brought about this system as a pilot.
With this system, the eligible borrower gives title of the house to a vehicle established by Carrington Capital and its joint venture partner, Oaktree Capital Management, L.P. A lease will then be brought about for the home with a reasonable monthly payment.
Lease payments will be determined by local market rates but are expected to be lower than the borrower’s mortgage obligation. Carrington will work with borrowers to establish a length for each lease.
The system will be tested in 6 of the biggest-hit markets to determine its effectiveness. The areas are the following Arizona, California, Texas, Florida, Nevada, and Georgia. Carrington will seek contact to property owners who are eligible.
In order to qualifyfor the system, homeowners must: Live in the Home; owe more than their home is worth; be delinquent for one hundred twenty days; and not have the ability to get an affordable loan modification while still having the resources to give their rental payments. Also, home owners must have a loan in the pilot portfolio serviced by Carrington.
To implement the system, CitiMortgage has changed the ownership of debts in its portfolio through the sale of over one hundred fifty million dollars in loans to the Carrington/Oaktree partnership.Hopefully this will help the housing recover quicker.
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