Are you behind on your mortgage payments? Is your home at risk of foreclosure?
Don’t worry! There are options to help and our attorneys can help you review all of the options available to you.
A forbearance agreement is a type of mortgage loan modification where the borrower and lender negotiate a plan to bring the mortgage payments to a level that the borrower can maintain.
What is a Forbearance Agreement?
For people that have suffered an unexpected financial hardship, a forbearance agreement can allow them to catch up on payments without the threat of losing their home. When you enter a forbearance agreement, the lender agrees to refrain from executing their right to place the house into foreclosure while you are given time to make up for missed payments.
It is important that you understand that the lender holds most of the power in forbearance agreements, as they have the power to change the terms of the mortgage loan. You may be able to obtain:
- A reduction of the monthly mortgage payment for a short period of time
- A wavier of delinquency fees
- Suspension of the mortgage payment for a minimum of four months
Forbearance agreements are best for those who have temporary financial troubles, such as unforeseen medical bills or loss of a job. It is not designed to be a solution for borrowers who may experience financial troubles for a long period of time.This means that if your mortgage is delinquent due to an increase in interest rate, such as an adjustable rate mortgage (ARM) loan, you should review other mortgage loan modification options.
Obtaining a forbearance agreement is no more difficult than obtaining any other type of mortgage modification. However, negotiating with your lender is always a tricky situation. The Lee Law Firm specializes in mortgage loan modifications and has helped hundreds of families save their homes. We can help you too!