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.

It is unfortunate that financial hardships, though temporary, can eradicate your current financial situation. As a homeowner if you are barely making it financially, you will find it difficult to catch up on any late bills and deal with debt. This is certainly the case when it comes to paying the mortgage on your home. One is not permitted to fall behind on mortgage payments even though you may have paid it regularly and on time for many years before the beginning of your financial hardship.

If your financial hardship is temporary, we can help you overcome this burden and avoid going into foreclosure by negotiatiing what is called a “Mortgage Forbearance Agreement” with your lender(s).

A Mortgage Forbearance Agreement is an agreement that is made between a mortgage holder and homeowner whose account is delinquent. Forbearance agreements reduce or suspend the homeowner’s payment for specific amount of time, generally between 3- to 12- months. During which the mortgage holder agrees not to pursue foreclosure proceedings against the homeowner.

Forbearance agreements are followed by a payment plan to bring the account up to date. The homeowner and lemder agree on a plan that is in the best interest of both parties. Generally, the repayment plan includes the normal monthly payment along with a payment to repay the delinquent amount. The delinquent amount will include any past due payments, accrued interest, or other fees charged by the mortgage holder. This repayment plan usually last for one year.

A forbearance agreement is for homeowners that experience temporary financial situations. The homeowner must prove that their situation is temporary to show that a forbearance agreement is in the best interest of both parties. The lender reviews the information provided by the homeowner to make a decision.

After a successful forbearance agreement and repayment plan, the homeowner’s mortgage is current and converted back to a regular account. The homeowner keeps their home and the bank is able to avoid the time and money needed to foreclose on a home.

When the homeowner’s situation is not temporary, a forbearance agreement and repayment plan is not in the best interest of either party. Although a foreclosure might seem like the right step to take for this situation, foreclosures are costly when there is little to no equity in the property. In situations where a foreclosure agreement is not an option, we will negotiate on the homeowners behalf with their lender for a loan modification.

A forbearance agreement allows for a win-win situation between a temporarily struggling homeowner and mortgage holder. When situations arise that prohibit a homeowner from making timely payments, they should call a Foreclosure Prevention firm such as ours as soon as possible. Foreclosure proceedings cost the mortgage holder time and money that can be avoided by a forbearance agreement between the two parties.

Forbearance and loan modification. Forbearance agreements for loan modifications Under the  Obama  Mortgage Loan Modification Plan.   Learn About Forbearance Agreements for Homeowners Resources about the new housing bill, home stabilization and information about  mortgage forbearance and loan modification programs. Information about  hardships and how to get a forbearance for your loan due to your hardship conditions.