June 16th, 2010
05:29 PM ET
12 years ago

Oil spill victims get a break on mortgage payments

New YorK (CNNMoney.com) - Mortgage borrowers hurt by the Gulf oil spill may qualify for temporary relief from paying their mortgages, without fear of losing their homes.

Citigroup's CitiMortgage unit announced Wednesday that it would suspend all foreclosure sales and filings for 90 days, through Sept. 17, on its Gulf properties. The policy applies only to first mortgages on homes that are within 25 miles of the coast.

Fannie Mae, the government-supported mortgage company, also touted its own relief policy Wednesday, saying that servicers of Fannie-backed loans may immediately suspend or lower payments on mortgages for borrowers whose income or property were affected by the spill.

"This was a reiteration of special relief policies that Fannie Mae has had for a while," said Janis Smith, a spokeswoman for Fannie.

"Borrowers who hope to obtain relief under this policy should call their servicers right away," Smith said. "They should not sit around waiting for a call."

Under the Fannie Mae program, servicers can offer to postpone or lower payments for up to 90 days, during which the servicer is expected to verify the borrower's income loss or the damage the oil spill may have done to their property.

Freddie Mac, the other government-supported mortgage giant, will grant up to six months forbearance to victims of the oil spill.

Full story

Filed under: Fannie Mae • Oil spill
soundoff (14 Responses)
  1. Citigroup's CitiMortgage unit announced Wednesday that it would suspend all foreclosure sales

    and the rest of us?

    do we need to get blown up to get treated fairly?

    June 16, 2010 05:32 pm at 5:32 pm |
  2. GI Joe

    I smell more than oil – those are republican states. I smell fraud popping up like tar balls.

    June 16, 2010 05:35 pm at 5:35 pm |
  3. Stacie

    Seems fair to me.

    June 16, 2010 05:46 pm at 5:46 pm |
  4. jeff jackson, alabama

    Those may be Republican states
    but you can bet your naive butts that
    the bulk of the fraud won't be from
    republican home owners. Wake up
    and smell the roses before you drink
    your next batch of cool-aid !!!
    Do you even know why Freddie and Fannie
    were created ???

    June 16, 2010 05:56 pm at 5:56 pm |
  5. HD

    Hahaha..., this is it Scammmmmmy! You got what exactly you waiting for.

    Who will find-out anyways? They are all in the same page. Sca...ing and ...mming and ...

    June 16, 2010 06:12 pm at 6:12 pm |
  6. thor

    Just keep Barney Frank from getting involved and everything will work out for the best !!!

    June 16, 2010 06:23 pm at 6:23 pm |
  7. Ready for 2012

    This is ridiculous. Why should these people be given special treatment? What about everyone else?

    June 16, 2010 06:38 pm at 6:38 pm |
  8. gr

    See fair to me, but we all know the Anti-American Republicans are going to be screaming about this. Anit-American Republicans hate the American people and do not want to give them any breaks.

    June 16, 2010 07:02 pm at 7:02 pm |
  9. Slick William

    Let's see, another 50 billion for the Teacher's Unions to prop up their pension plans on top of a trillion dollar Stimuless Bill to keep the State bureaucrats in their gravy jobs and now a little gift for those pissed off voters on the Gulf coast that are devastated by once again the Fed's inability to regulate. How about this, cut all State and Federal payrolls to half, including our illustrious House and Senate, as well as the Executive Branch, consider it a demotion! Oh and GI JOE, not that it needs saying but you are an idiot.

    June 16, 2010 07:30 pm at 7:30 pm |
  10. yuhmad

    How come there are hardly any Republicans commenting on the oil spill especially Cheney? Usually, Republicans are always the first to find fault about President Obama's agenda. There were obstructionists to the health care plan, renewing job benefits to the jobless, wall street reform and the list goes on. Republicans must be cooking something for the midterm elections.

    June 16, 2010 08:44 pm at 8:44 pm |
  11. Marie MD

    These folks better get the money as soon as they can because if it's up to bachman and boner BP rocks!
    From the mouth of this rethug chick who still calls the administration socialist.
    “I’m not here to shill for BP.” Instead, she argued, she was defending the greater free market from the big government tendencies of the Obama administration. We don’t want that to be the automatic response from government because we are a free-market economy. And, unfortunately, the Obama administration hasn’t been making any efforts to unwind the government out of these private industries.”
    Can this woman be any more stupid and completely clueless.

    June 16, 2010 09:12 pm at 9:12 pm |
  12. Ken in NC

    I wonder if Republicans want to call this socialism? I know that Michelle Bauchman has already claimed that President Obama is redistributing 20 billion of BP's money. That lady is a Fruit Cake. She is an IDIOT or both.

    When people need help, they should get it. This is done to them through no fault of their own and yet that woman feels that help being given to them is Socialism on the part of the President.

    I wonder if she will go to the Gulf and try telling the people that down there. She would find herself tarred and feathered............well maybe oiled and feathered .

    June 16, 2010 09:16 pm at 9:16 pm |
  13. DENNA

    While I agree with what is being done, it amazes me that with so much anti-government sentiment going around that these people would accept any help. You know that old 'pull yourself up by your boot straps'. Kind of tough without boots, right?

    In any case, I hope that these people get all the help they need to rebuild their lives and remember to be kind the next time others need help.

    June 16, 2010 09:21 pm at 9:21 pm |
  14. Eric

    I wonder if these companies wouldve been willing to do this, if the government didnt pretty much own them now? Im thinking no.

    June 16, 2010 10:17 pm at 10:17 pm |