Gulf Coast Homeowners Get Relief From Foreclosures and Mortgage Payments

Last Updated Jun 16, 2010 5:40 PM EDT

There's a movement brewing to help homeowners who are already deeply affected by the BP oil spill in the Gulf of Mexico.

Fannie Mae Servicers Suspend or Reduce Payments

In addition to announcing its intention to delist from the New York Stock Exchange, Fannie Mae also put out a press release announcing that loan servicers may suspend or reduce payments owed by Gulf Coast homeowners affected by the spill.
"We want to give homeowners every opportunity to weather this unprecedented disaster, including relief from their mortgage payment if that will help them get back on their feet and stay in their homes," said Michael J. Williams, President and CEO. "Our policy is in place to support those who are experiencing a disaster-related hardship through no fault of their own and are acting in good faith to meet their mortgage obligation."
Under Fannie Mae's "Special Relief Measures," servicers may suspend or reduce payments for up to 90 days while they determine the nature and extent of the impact on the borrower's finances. Borrowers who need immediate relief, and whose loans are owned or controlled by Fannie Mae should ask their loan servicers for the "Fannie Mae Special Relief Measures."

By the way, Freddie Mac has also submitted its intention to delist its shares from the New York Stock Exchange.

Citi Suspends Foreclosures for Gulf Coast Residents

Citi announced it was suspending foreclosures for Gulf Coast residents who live in coastal areas hardest-hit by the oil spill. Here's a piece of today's press release:
During the three-month suspension, effective June 17 through September 17, 2010, borrowers with first mortgage loans owned by CitiMortgage and who meet certain other criteria will not be subject to foreclosure sales or foreclosure notifications. While CitiMortgage does not own all of the loans it services, the company hopes to help as many borrowers as possible with this initiative.

Vikram Pandit, Chief Executive Officer of Citi said, "By putting CitiMortgage foreclosures on hold, we aim to ease the burden on residents of the Gulf states so they can concentrate on the most urgent matters facing them. In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about."

"We hope that with this suspension we can help ease some of the financial stress for our customers in the affected Gulf region," said Sanjiv Das, President and Chief Executive Officer of CitiMortgage. "Many of them are facing financial hardship as a result of the spill, and we want to help support them during this very unsettling time," Mr. Das added.
I'm sure that more lenders will offer additional relief to Gulf Coast residents. So, check back for updates.

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Ilyce R. Glink is the bestselling author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!.
She blogs about money and real estate at ThinkGlink.com.
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    Ilyce R. Glink is an award-winning, nationally syndicated columnist, best-selling book author, and radio talk show host who also hosts "Expert Real Estate Tips," a Internet video show. She owns ThinkGlink.com as well as Think Glink Media, a privately held company that provides consulting, content and video services to companies and non-profit organizations.

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