A moratorium on foreclosures ends July 31, and mortgage forbearance programs phase out Sept. 30, but the economy has yet to fully recover from last year’s coronavirus recession. With that reality in mind, President Joe Biden today announced a new round of relief for mortgage borrowers who are struggling to get back on track.
The program lets borrowers negotiate reductions to their monthly payments of up to 25 percent. The newly unveiled mortgage modifications apply to loans backed by the Federal Housing Administration, the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture. Borrowers with loans backed by Fannie Mae and Freddie Mac already can negotiate 20 percent cuts to their payments, Biden said.
“This brings options for homeowners with mortgages backed by HUD, USDA, and VA closer in alignment with options for homeowners with mortgages backed by Fannie Mae and Freddie Mac,” Biden said in a statement.
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