Mortgage forebearance

Hi Kathie,

A forbearance is like an alternative repayment plan which a lender/mortgage company allows for a borrower who's not able to continue with the original payment plan. This is mostly done to prevent the borrower from going into default. Know more... .

The length and terms would depend upon your financial situation, how much you've paid till now and by what amount you are behind on the loan.

What terms and conditions are your lender offering you? feel free to discuss it here.

Thanks

I had a loan modification and because of unforseen circumstance like not getting a regular paycheck in june of o8 my loan modification went into default. then I was on a repayment program one person at the company said you have this amount of days to make your first installemnt of $ and so on. then I called to make a payment on the phone the person at the other end of the line told me my terms with the repayment plan became null and void so now I am working with a loan modification company because my lender is so backed up I went this route . then today the loan modification mittigation person told me that will probably be the way to go. when will my first payment be due?

hi bret alden!

welcome to forums!

you will have to contact the loss mitigation expert who is handling your case and get to know the exact date on which your first payment will be due. he/she will be the right person to let you know about the date.

feel free to ask if you have further queries.

sussane

If I ask for a certain date can the loss mitigation dept. work something on my behalf?

Hi bret,

It will be the discretion of the loss mitigation department whether they will be ready to work on your behalf if you give them a date. I would suggest you to speak to them and get things cleared.

Thanks

Hello

I recently requested a loan modification or restructure via NACA, the lender has offered a 6 months "forbearance". While we are NOT currently late on our payments, the cost of taxes/insurance is making it difficult for us. My question is... if we agree to the terms what happens to our credit? Also, what happens with the 'unpaid balance' of the loan.

Hi Kim,

A loan modification is different from forbearance. In a modification, the lender changes the rate or the term of the loan to reduce the monthly mortgage payments. But in forbearance, the rate and term of the loan is not altered. It only gives you some time to catch up with the payments and get current on the loan. It is strange why your lender offered you forbearance when you are still current on the loan. Forbearance is a temporary solution. It does not help you in the long run. Moreover, the unpaid balance of the loan during the forbearance period gets added to the principal balance of the loan and it will have to be paid off at the end of the forbearance period.

What happens to the balance in arrears after the forebearance plan is done?
Will they spread it throughout the remainder of the loan?

Hi Ester,

After the forbearance plan gets over, the lender will offer you a new repayment plan wherein you'll find that they have spread the amount throughout the remainder of the loan.

Thanks