Forbearance allows the homeowner to stop foreclosure and keep their home.
With a forbearance agreement a borrower will either make normal mortgage payments with the late payments and arrears simply put on the end of the loan or the Homeowner will have increased payments until the mortgage is brought current.
Often their may be a period in which no mortgage payment is due. This period of mortgage relief allows the mortgagee time to solve their financial hardship. This is often as simple as getting a new job or sometimes may involve the borrower raising funds from another source and then using those funds to pay off the arrears of their past due mortgage balance.
A lender is much more likely to offer a forbearance agreement to a homeowner who can demonstrate that they have incurred a short term hardship as opposed to a long term hardship.
If the homeowner has incurred a long term hardship then a mortgage workout such as a loan modification will prove a better fit.
What I really want homeowners to remember is that there is a lot debt help and mortgage assistance available for those in financial hardship. So if one mortgage solution will not work for you don't give up. There is something out there that can help you no matter what the financial matter may be.
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