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Fannie Mae grants forbearance to homeowners with toxic Chinese drywall

April 7, 2010 - Some Virginia-based homeowners have received a six-month release from their mortgages as they work to correct problems caused by Chinese drywall used to build their homes, the Daily Press reports.

After inspectors discovered that a type of drywall imported from China emits sulfur, several mortgage holders have been forced to leave their houses and move into rental homes while they wait for repairs or look for a new place to live. As a result, many of these individuals were struggling to make both rental and home loan payments.

To help some of these individuals get back on their feet, Fannie Mae has granted 20 homeowners relief from their mortgages that will not affect their credit, according to the news source. This is initiative was announced in a letter from Michael J. Williams, the company's CEO, to Virginia Senator Mark Warner.

Warner has been urging lenders to give a break to homeowners dealing with sulfur-ridden drywall problems for several months, according to his website. In October, he sent a letter asking many banks and mortgage lenders to consider the health and safety of these homeowners by relieving them from loans for unlivable homes. Many other lenders have responded to his requests by working with homeowners to determine more feasible mortgage payments.

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