Some homeowners who are experiencing problems with tainted Chinese drywall, which emits a bad smell and can cause respiratory issues and other health problems, may get some relief from a new policy from lender Fannie Mae for people facing “unique hardships.” In some cases, owners of homes with drywall problems must leave their residences for months while the material is replaced. The cost of temporary housing can make it difficult for owners to make mortgage payments. Now Fannie Mae has formalized an approach that allows mortgage servicers to request Fannie Mae’s permission on behalf of their borrowers to skip payments for up to six months and add the missed payments to the end of the mortgage term. The vast majority of homeowners with drywall problems are in the Gulf Coast region.

Fannie Mae Offers Borrowers Hardship Relief (New York Times 9/30/10)

August 3, 2010