Under the moratorium, homeowners with federally guaranteed mortgages can skip monthly payments for up to 18 months without penalty and pay them back later. This benefit expires in September for borrowers who entered abstinence plans at the start of the pandemic. Some borrowers earning less than before the pandemic and unable to resume their regular monthly payments are given an additional grace period of up to three months.
“Today, approximately 1.75 million Americans are showing patience,” the White House said in a statement. “To ensure a stable and fair recovery from the devastation caused by the COVID-19 pandemic and to prepare homeowners to exit the mortgage abstinence regime, the Biden-Harris administration is taking steps to keep Americans in their homes and support a return to more stable lives. Housing market. “
Delaying mortgage payments, lowering interest rates, or extending mortgages has been effective in helping homeowners deprived of money during the economic downturn, according to the Wall Street Journal, citing research from the 2008-2009 financial crisis.