Some Relief in the Gulf for Homeowners
Posted by Matthew Brian Hersh on June 17, 2010
Housing Wire reported this morning that mortgage giant Fannie Mae has authorized its servicers to reduce mortgage payments or suspend payments altogether for those homeowners affected by the BP oil spill, either by lost wages or damages to property.
According to Fannie Mae president and CEO Michael Williams:
“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…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.”
According to the report, servicers can use Fannie Mae’s Special Relief Measure policy in order to lessen or eliminate payments for up to 90 days. The servicer then assesses the homeowner’s situation and offer up forbearance for an additional three months of forbearance, or even conduct a loan modification.
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Matthew Brian Hersh proudly served as senior editor at Shelterforce from March 2008 to October 2012. He studied English at Rutgers University and has spent his professional career in journalism, policy, and politics. He displays many of the trappings of a New Jersey sports fan: dispirited Mets fan, former Nets fan before they left the state, and normally satisfied Giants fan. Hersh lives in Highland Park, NJ with his wife and two children.