Banks cleared to help Georgia flood victims

Victims of last week's floods may soon get some relief from their banks.

The Federal Deposit Insurance Corp. on Tuesday issued guidelines allowing banks to modify loans of borrowers who are picking up the pieces from the deluge.

For borrowers, that could mean temporarily reduced payments or even the option to skip a few payments while they get their finances  in order.

The Federal Deposit Insurance Corp. commonly issues such guidelines in areas affected by natural disasters, bank experts said.

In some cases, reworking terms of a loan could help people stay in their homes and avoid foreclosure, said Steve Bridges, executive vice president of the Community Bankers Association of Georgia.

"The last thing in the world a bank wants to do is foreclose on a piece of property, especially one that's been damaged," Bridges said.

The guidelines issued Tuesday are general, emphasizing the need for banks to work with their customers to help the region recover from the floods.