This modification is designed to help borrowers reduce principal and interest payments by about 25% from their 30-year mortgage payment plan if they're struggling to begin making their payments again due to the COVID-19 pandemic, according to the FHA. "Over the last year, we have made...
a COVID-19 Recovery Modification may be the next available step. The Recovery Modification sees the servicer use partial claim funds of up to 30% of the unpaid balance of the loan to cover any overdue amounts to bring the loan current. If the partial claim isn't sufficient to cover thes...