What Is Forbearance Agreement And How It Works

Forbearance in most cases will put you under a greater financial stress than actually help you.
When you fall behind on your mortgage payments, you are then on the road to foreclosure. The first solution your lender will offer, is to pay in full and come current. If you are unable to pay the entire delinquent amount, your lender will offer you a payment structure.

The Process:

Your lender will take the full amount of your past due payments plus any additional fees (late fees,attorneys fees).
The lender will add them together and then divide the amount into payments.
Those payments will be added to your monthly mortgage payment until you pay off the delinquent amount.

An Example:

If your payment is $1000 a month and you are behind four payments, you now owe $4000 not including late fees etc. Your lender will divide your past dues $4000 into say 8 payments. Now your monthly payments will be $1000 + $500 for 8 months.
This process as you can see will increase your payments which you could not afford to begin with.

When does it work:

The only way a payment plan program will work is if you were experiencing a temporary financial set back but now your income has increased significantly.

In more than 80% of all forbearance cases the home owner fell behind on their payments within less than a year. The worst part is that when you fall behind on a
work out payment your case goes back to the status it was before the repayment program was offered to you.

Consult a Specialist:

Before you sign or agree to anything your lender offers you, always contact an independent 3rd party first when in financial difficulty. They will have your interest at heart not
your lenders.
Call me to see what can be done in your case to avoid foreclosure and to lower your mortgage payments.