in just a couple of months, you may be able to get back to making regular payments. In such cases, you could ask your lender for forbearance. This kind of agreement allows you to temporarily delay payment or pay fewer monthly payments for a certain amount of time. The length of the repayment period varies, but on average it’s between three and six months. During this time, your lender agrees not to pursue foreclosure, and you, in turn, promise to catch up on the payments you’ve missed. Your lender will not foreclose on the property during this period. In return, you agree to recommence paying your mortgage in full and on schedule after the forbearance period is up. You also agree to pay extra to catch up on all missed payments. The process for seeking loan forbearance starts out the same way as getting a loan modification: Contact your lender and ask them to help you set up a plan. Just remember that forbearance is only a temporary solution. It won’t help you stay in a home you can’t afford.
REPAYMENT PLAN/SPECIAL FORBEARANCE
Special forbearance is similar to the forbearance plan above, but might offer greater relief to the borrower, such as a longer period of reduced or suspended payments while the lender works with you to create a new mortgage repayment plan. Ordinarily, you must have missed no more than 12 monthly mortgage payments. You need to prove that you lost your job or main source of income and/or you are experiencing unexpected monthly expenses. After this period, your lender will require you to start making higher payments (usually one-and-a-half times your original amount) until your loan is current.
Setting up a repayment plan may be a viable option to avoid
37
Powered by FlippingBook