CitiMortgage, a unit of Citigroup, announced today that it would suspend all foreclosure sales and filings for 90 days on properties within 25 miles of the Gulf Coast. This would give distressed customers a breather until Sept. 17. There is a small caveat: the grace period applies only to first mortgages that Citi owns.
Fannie Mae also announced a break for Gulf Coast homeowners today. Effective immediately, servicers of Fannie-backed loans may suspend or lower mortgage payments if customers’ income took a hit from, or their property was damaged by, the spill.
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