Mortgage relief is on the way for some struggling homeowners in and around the Gulf Coast region who have been hit hard by the worst ecological disaster in the history of the United States.

Deepwater Horizon, a BP-run oil well that was once located about 40 miles off the Louisiana coast, exploded back in late April. Ever since it has been spewing about a quarter-million gallons (conservative estimate) of crude into the once-pristine Gulf of Mexico.

Fishing and tourism industries have ground to a screeching halt as a result, killing revenue for companies that rely on the Gulf and their ability to pay their employees.

And when people can’t make money, they typically can’t afford to pay their mortgages, among other important bills.

CitiGroup feels their pain and has suspended all foreclosure sales and evictions in the region for three months, starting June 17 to Sept. 17, 2010 in zip codes “within roughly 25 miles of the coastline.”

That includes about 515 counties in Alabama, Florida, Louisiana and Mississippi, according to REOInsider.

Here’s a snip from Vikram Pandi, CEO of Citi, on the foreclosure moratorium:

“In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about.”

This is great news, considering the recent report we passed along that predicted this crisis could mean $4.3 billion in lost real estate values when all is said and done. A $20 billion (and possibly more) BP fund that will soon be set aside to compensate victims of the spill is also welcome news.

Perhaps more lenders will soon follow Citi’s lead and suspend foreclosures … the more the merrier.

The hits just keep on coming for those in and around the Gulf of Mexico.

Business Week reports that the disastrous uncontrolled BP oil spill one mile underwater, which continues to spew millions of gallons of crude into the ecologically-sensitive waters, will likely significantly impact shore-area property values.

To the tune of $4.3 billion — as much as 10 percent — over the next three years for a 600-mile stretch of prime waterfront real estate.

Alabama, Florida, Louisiana, Mississippi and Texas all border the Gulf of Mexico, which also happens to be a way of life for many residents near the water’s edge.

Indeed, tourism, fishing and other big-time industries have already been hit hard because of the crisis. And now its deleterious affects appear to be on their way toward trickling down to innocent homeowners.

In fact, Don Epley, director of the center for Real Estate at the University of South Alabama in Mobile, Ala., predicts foreclosures are likely right around the corner:

“The defaults will start happening in early fall. You can directly attribute those to the oil spill.”

The report, which references a recent study from CoStar Group Inc., hotels and restaurants are also in major jeopardy of falling into default. Without tourists and other visitors, it will be hard for these establishments to make ends meet.

BP PLC — the massive oil-producing giant responsible for the disaster — has already earmarked funds to help offset the losses in the tourism and fishing industries. Whether or not the company will also put funds aside to assist struggling home/business owners affected by the spill remains to be seen.

It’s that time again.

REDC, one of the nation’s most reputable and successful real estate auction companies, will conduct public foreclosure sales from this Saturday (Oct. 10) through Thursday (Oct. 29) in several states, including Alabama, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.

It’s six more consecutive days of super sales on condominiums and townhomes, as well as single- and multi-family properties. All told, 467 properties combined must be sold in less than one week.

Bids can start as low as $500 because everything must go!

If you’re looking to take advantage of the best real estate deals in these areas then definitely check out REDCs foreclosure lender auctions.

Here are the locations (For complete details click here):

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