Biden Administration Announces Mortgage Payment Waiver As Mortgage Moratorium Comes to End | Burr and Foreman

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In just a few days, on July 31, 2021, the national moratorium on the eviction and alienation of mortgaged housing will expire. As this deadline quickly approaches, the Biden administration announced: new mortgage assistance plan[1] July 23 to provide assistance to individuals with federal government-backed mortgages who may soon face the possibility of losing their homes.

The new program aims to reduce monthly payments for individuals with qualifying mortgages. Borrowers struggling to make their payments and facing foreclosures when the moratorium ends can negotiate a reduction in their mortgage payments by up to 25% for FHA-secured mortgages and up to 20% for Department of Housing mortgages. Veterans Affairs and the US Department of Housing. Agriculture. In addition, the concession plan allows you to lower interest rates and, under certain circumstances, extend the term of the loan. These new discounts are similar to those already in existence for mortgages secured by Fannie Mae and Freddie Mac.

Homeowner Assistance Fund funds that are allocated to states to prevent defaults on mortgage payments can be used in conjunction with new relief measures to provide additional assistance to borrowers or to help those who do not have a federally backed mortgage and who do not can take it. The advantage of the new terrain plan.

According to CFPB rules, mortgage services are required to discuss available assistance options with their borrowers. Thus, to take advantage of the benefit, borrowers should contact their mortgage agent to discuss any options that may be available.

[1] The White house, www.whitehouse.gov, 23 July 2021

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