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.