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Jun 18, 2010 2:33 PM by Veronica White

Mortgage Relief for Oil-Stricken Areas

If you live along the oil-stricken coast you may be able to get some financial relief on your mortgage payments.

Government-sponsored mortgage purchaser Fannie Mae says servicers may suspend or reduce mortgage payments for those impacted by the oil spill.

Fannie Mae says it is at the mortgage servicer's discretion and is determined on a case-by-case basis.

Mortgage servicers work with homeowners through inspections and assessments to find out the impact the spill has had

Under Fannie Mae's "Special Relief Measures" policy, banks may suspend or reduce a borrower's payments for up to 90 days. After that they may offer 3 more months of forbearance, loan modification or other solution.

CEO Michael J. Williams, says "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."

Since some in similar situations after Hurricane Katrina ended up with huge sums to pay in the end, mortgage broker Fabio Passos says be careful:

"If you're having problems paying your mortgage contact the servicer of your loan and make sure you understand the terms and how long they allow you wait for that payment," he says.

Remember, you may not write your check to Fannie Mae every month, but you still may be eligible, because Fannie Mae backs 90% of loans issued.

Call your mortgage company to see if you qualify for relief.

 

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