Citi, Fannie Mae, Freddie Mac offer foreclosure, payment suspension to Gulf homeowners

Citi, Fannie, Freddie offer Gulf mortgage relief

DES MOINES, Iowa — Homeowners in areas of the Gulf of Mexico affected by the BP oil spill can get mortgage relief from Citigroup Inc. and government sponsored mortgage purchasers Fannie Mae and Freddie Mac.

Citigroup says it is suspending loan foreclosures in the region through Sept. 17.

Fannie Mae says companies servicing its home loans may suspend or reduce borrower payments for up to 90 days. Additional time may be granted after a review of individual circumstances.

Freddie Mac spokesman Brad German said it also offers relief for a variety of reasons, including loss of income.

The eight-week-old oil disaster is affecting the coasts of Louisiana, Mississippi, Alabama and Florida.

Citigroup’s home mortgage division said Wednesday it is suspending loan foreclosures in the region through Sept. 17, and that borrowers with first mortgage loans owned by CitiMortgage who meet certain criteria will not be subject to foreclosure sales or foreclosure notifications.

“In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about,” Citigroup CEO Vikram Pandit said in a statement.

CitiMortgage borrowers occupying homes in zip codes within 25 miles of affected coastal areas will be eligible.

The eight-week-old disaster, in which tens of thousands of gallons of oil still pour from the broken deepwater well daily, is affecting the coasts of Louisiana, Mississippi, Alabama and Florida.

Fannie Mae said companies servicing its home loans may immediately suspend or reduce payments for borrowers whose property or income are negatively affected for up to 90 days. Additional time may be granted after a review of individual circumstances.

“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,” CEO Michael J. Williams said in a statement.

Borrowers seeking relief under Fannie Mae’s or Freddie Mac’s special relief measures should contact their mortgage servicer.