Borrowers who fell behind on their mortgages during the Covid-19 pandemic and continue to face economic hardship will get help from a Biden administration program announced on Friday, a bid to prevent a sharp rise in foreclosures over the coming months.
The program would allow borrowers with loans backed by the Federal Housing Administration and other federal agencies to extend the length of their mortgages, locking in lower monthly principal and interest payments. About 75% of new home loans are backed by the federal government, according to the Urban Institute.
Friday’s changes are aimed at homeowners who took advantage of so-called forbearance programs that allowed them to skip monthly payments for up to 18 months, but who can’t resume making those normal payments as that relief begins to expire. Adding new modification options for struggling homeowners is “an important additional step to give people the opportunity to stay in their homes after they had a hardship during the pandemic,” said Bob Broeksmit, president and chief executive of the Mortgage Bankers Association.
About 1.55 million homeowners are seriously delinquent—meaning they haven’t made mortgage payments in at least 90 days, according to the mortgage-data firm Black Knight Inc. These borrowers, the bulk of whom have forbearance plans, may be most at risk of foreclosure in the coming months. They represent about 2.9% of the 53 million active mortgages, down from a high of about 4.4% in August and September 2020.
Why are people at foreclosure in the first place, with so many employers hiring these benefits are just going to make people more lazy and get into a spend it all culture instead of saving and incur debt for our future generations!
The best choice I've made this year was investing in cryptocurrency and forex trading and earning from home. With the help of lisaFx090 I've been earning $7500 weekly I've never regretted this decision.
Yea! Who pays for it again ?
Biden has the right idea this time around, compared to 2009 Great Recession However, somewhere along the line this time, some one needs to eat those losses, other than tax payers
Oh joy, now I pay my rent increases and other peoples rent/mortgage. Love watching pricing go parabolic and then having to pay other people’s mortgages via inflation from this. This country is drunk on spending and they don’t gaf about those who are responsible.
Biden magic
When covid first started I would’ve said hurrah - good move. But, at this point, it’s blowing a massive housing bubble increasing prices and rents for others by constraining supply. It’s time for the moratoriums to end.
good
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: politico - 🏆 381. / 59 Read more »
Source: CNN - 🏆 4. / 95 Read more »
Source: THR - 🏆 411. / 53 Read more »
Source: THR - 🏆 411. / 53 Read more »
Source: BuzzFeed - 🏆 730. / 51 Read more »