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Fannie Mae helps BP oil spill victims

June 19th, 2010

For homeowners in the Gulf Coast facing problems making their mortgage payments,  the oil spill was another nail in the coffin. Many find themselves without an income and thus, are unable to make loan payments. The situation is even more pressing and stressful for those in a trial loan modification.  As you might recall, if you miss the payments during the trial phase it’s game over.

Fannie Mae has a solution and it might rescue many homeowners. Fannie Mae has instructed the loan servicers to immediately suspend or reduce mortgage payments. This relief is good for 90 days. After 90 days there can be a further extension of another 90 days. Hopefully, this will be enough time for BP and the Government to work out a compensation plan for homeowners affected by the spill.

How will the spill affect homeowners who are already in the process of foreclosure? Will the banks back off? Chances are that the banks will proceed on schedule. It’s business as usual.

Entry Filed under: Fannie Mae