Forbearance is when a lender agrees
to let you delay your payments to
them for a short period of time.
That doesn't mean the lender has
forgiven the debt but just allows
you to pay what you owe at a later
date.Forbearance can be an option
to someone that is experiencing
temporary financial difficulty. A
forbearance agreement is most
commonly applied to two kinds of
loans... mortgages and student
loans.
Forbearance Mortgage
A forbearance mortgage is when
your lender agrees to let you delay
your monthly mortgage payments for a
short period of time. A forbearance
mortgage is often combined with
other programs that bring your
monthly mortgage payments current
after a negotiated period of time.
You sign a forbearance agreement
that states the lender will require
you to pay the amount you owe at a
later date. This is a much better
option than going into mortgage
foreclosure.
A lender will review and analyze
your financial situation before
offering the forbearance agreement.
Once a lender or servicer agrees to
allow forbearance, it's very
important that you follow through on
any promises you make.
The best thing to do is to
determine if your lender or loan
servicer will consider forbearance.
Let one of our trained Loss
Mitigation Specialists assist you in
determining what your best option
is. Avoiding mortgage
foreclosure is always a better
choice and forbearance may be a good
way to accomplish it.
