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Last updated on September 8th, 2021 at 03:23 pm
On Friday the Biden administration announced that it is coming with new loan modifications and payment reductions plan to help homeowners who are lagging behind on their mortgage payments during the coronavirus pandemic.
This modification will stave the wave of foreclosures and allow homeowners having federally backed mortgages to extend the terms of their loan and reduce their interest rates.
Those homeowners who cannot afford to resume their monthly mortgage payments can heave a sigh of relief.
The assistance program will provide homeowners with approximately 25% reduction in their monthly principal and interest payments said the White House.
The program changes are similar to earlier loan assistance that was provided to Americans having mortgages from Fannie Mae and Freddie Mac.
According to a White House fact sheet, the homeowners who cannot resume their current monthly mortgage payments can extend their loan to 360 months at the market rate.
Borrowers who currently hold federally backed mortgages can delay payments for up to 18 months.
This mortgage assistance comes as federal protections for renters whose monthly payments are scheduled to expire at the end of the month.
Reference Source: USA Today
