New rules could help homeowners avoid pandemic-related foreclosures

El Paso News

Model homes and for sale signs line the streets as construction continues at a housing plan in Zelienople, Pa., Wednesday, March 18, 2020. (AP Photo/Keith Srakocic)

EL PASO, Texas (KTSM) — Millions of homeowners who are behind on their mortgage payments could avoid foreclosure under a new set of rules from the Consumer Financial Protection Bureau.

Lenders will first have to contact homeowners to see if they qualify for a lower interest rate or another loan modification.

The agency is trying to avoid a wave of foreclosures as 900,000 homeowners start to exit COVID-related mortgage holiday programs in the coming months.

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