Byline: Kimberly Miller

Feb. 17--With rising numbers of Floridians defaulting on their home loans, CitiMortgage is now allowing some owners to stay in their homes six months for free in exchange for handing over the keys. The program, which began Friday and is being tested in five other states, cancels the borrower's debt while awarding them at least $1,000 to cover relocation costs. For the bank, the benefit is avoiding foreclosure expenses and lengthy court cases. But the advantage for the borrower is less clear. With backlogged courts and overwhelmed lenders, people facing a foreclosure in Florida are already staying in their homes for free for a year or longer. Plus, the black mark on a borrower's credit will be basically the same under the new program as if the home was foreclosed on. CitiMortgage's report to credit agencies will show that a deed...