WASHINGTON - Citigroup Inc. plans to let homeowners on the verge of foreclosure stay in their homes for six months - if they turn over the deed to their property. Citi said Thursday it is launching the pilot program, dubbed "Foreclosure Alternatives," this week in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. Initially, about 1,000 homeowners are expected to participate. Citi may expand the program nationwide. In a normal foreclosure, a lender assumes legal control of the property and evicts the homeowner. But Citi's program, like other "deed in lieu of foreclosure" efforts, allows the homeowner to avoid a completed foreclosure. The program results in a less severe hit to the borrower's credit score.

- Associated Press

Discuss this story and others in our talk forums Most recent business talk forum topics: More news talk forums: Local | Nation/World | Business | Health/Science | Computers/Technology
Note: In-story commenting has been temporarily disabled due to technical issues. We are working to correct the issue and will bring back this feature in the future. In the meantime, please use our talk forums to discuss stories.