Homeowners with tainted Chinese drywall could finally get some help from their mortgage companies.
Mortgage giants Fannie Mae and Freddie Mac have directed servicers to reduce or suspend mortgage payments for those with bad drywall.
Fannie Mae's policy goes into affect in July and gives homeowners up to six months forbearance. Freddie Mac's new rules take effect immediately and allow homeowners with the bad drywall to take a hiatus from paying or to pay a lower amount for up to 1 year.
"It's taken a long time for help to come," said U.S. Senator Bill Nelson, who has pressed for this kind of assistance. "But this is some welcome news for folks who are out there really struggling."
The drywall emits a corrosive gas that destroys appliances, air conditioners and anything metal. Some homeowners also think it causes health problems.
The government is still investigating Chinese drywall but recommends affected homes be gutted and rebuilt with domestic drywall. It's a project that builders say can cost about $100,000.
Many homeowners have moved out, fearing that it's not safe to breathe in the sulfuric gas. Others, though, don't have anywhere else to go.
Regardless, until now, homeowners were responsible for paying mortgage payments, whether they able to live in their homes or not.
These new policies are only for loans owned by Fannie Mae or Freddie Mac. Homeowners can find out if they qualify by contacting their loan servicer.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement
Advertisement