UPDATE 1-Landslide buries hundreds of homes in Mexico

Tue Sep 28, 2010 9:34am EDT

* Landslide buries hundreds of homes

* Weather, location could delay rescue efforts (Adds bad weather, rescue efforts)

OAXACA, Mexico, Sept 28 (Reuters) - A landslide buried some 300 homes in southwestern Mexico early on Tuesday and is feared to have killed hundreds while they slept, local authorities and media said.

Heavy rain in the mountains of Oaxaca state loosened the soil around the town of Santa Maria Tlahuitoltepec, four hours' drive from the capital of Oaxaca, famous for its colonial buildings and nearby archeological sites.

Authorities said bad weather had affected roads in the area and would delay rescue teams. A civil protection source declined to comment on the estimated number of victims but Excelsior, a leading national newspaper, said 1,000 people were feared dead.

A storm system in the western Caribbean has generated widespread rain in the area over the past week. (Reporting by Nadya Altamirano; editing by Mohammad Zargham)

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