Forbearance and Foreclosure
Missed or later mortgage payments = Increased risk of foreclosure
This is a situation that many people know all too well. Our attorneys have the knowledge and tools to help you get caught up and save your house. But time is of the essence!
How A Forbearance Agreement Works
When a borrower misses or makes late mortgage payments, lenders have the right to place the home into foreclosure. In a forbearance agreement, the lender agrees to refrain from executing their right to place the house into foreclosure.
A forbearance agreement will delay a foreclosure while the borrower follows a plan to make the necessary payments to bring the mortgage loan account current. The lender may allow a reduced payment, postpone payment or waive delinquency fees, for a short amount of time to assist the borrower when working through financial instability.
Doing Your Part
Once the lender has developed a forbearance agreement, the borrower becomes responsible for executing the repayment plan. Once the repayment plan has been satisfied, the borrower resumes the original mortgage payments and the home is no longer under threat of foreclosure.
If the borrower fails to make the payments as outlined in the forbearance agreement, the contract has been broken and the house is then placed into default proceedings. Filing for bankruptcy after the development of a forbearance agreement will also void the contract. If the forbearance agreement if voided, the home is no longer protected from foreclosure and the lender has the right to execute a foreclosure proceeding.
If you are in need of help stopping or preventing a foreclosure, contact us today to find out how we can help! Our attorneys work hard to help you get caught up on your mortgage payments and keep the keys to your house in your pocket!