Financial Assistance For Homeowners Expands As Interest Rates Continue To Skyrocket
By NICOLE MURRAY
There have been 1.3 million cases where loss mitigation options have helped borrowers remain in their homes since the start of the Covid-19 pandemic, according to officials at the U.S. Department of Housing and Urban Development.
A few common tools available through these home retention programs include a loan modification, forbearance agreement, or repayment plan.
However, some of these resources that once were effective in avoiding foreclosures now result in little to no reductions in monthly mortgage payments due to spiking interest rates.
As a result, a new proposal is being offered by the Federal Housing Administration, so borrowers have a potentially more effective option to avoid foreclosure. This tool is called the Payment Supplement Partial Claim.…