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Avoiding Foreclosure through Forbearance

Posted on: 11th Apr, 2004 10:22 pm
Forbearance is a temporary agreement under which a mortgage lender can either reduce or suspend monthly installments paid by the borrower. Usually forbearance continues for a period of less than 6 months, but it can last for some more time depending upon the lender.

Through forbearance on mortgage, borrowers get the chance to avoid foreclosure - a legal process by which the lender can sell off the property and recover the outstanding loan balance.

But forbearance is not allowed to each and every borrower. Generally, those having recently lost their sources of income and going through financial problems are allowed to go through forbearance. Lenders consider such an approach only if the borrower can convince them that the problem is temporary. The borrower should also have relevant proofs stating that he is capable of qualifying for the reduced payment plan.

At the end of the forbearance agreement, the borrower has to make regular payments along with an extra amount that will make up for the loss on account of non-payment or reduced payments. Usually the repayment period does not exceed a year.

Forbearance does not imply that the lender has forgiven the debt; rather it allows a borrower to get along with the loan payments that he owes within a later date.
What are good terms to accept a forbearance agreement?
Posted on: 19th Mar, 2008 11:52 am
Hi kathie,

Welcome to forums.

I've already replied to your query at . Please have a look at it.
Posted on: 19th Mar, 2008 11:44 pm
I'm currently unemployed and am considering Forbearance initially for 4 months with 0 payments. At the end of the 4 months and I have a job, will my house payment be higher than the original amount - which I don't think I can't afford, or will the bank modify the loan so I can afford it?

Thank you,

Posted on: 11th Feb, 2009 04:08 am
Hi Cathy,

After the forbearance period is over, you payments will definitely increase. In my opinion, you should apply for a loan modification right now if you are delinquent on your payments.

Posted on: 13th Feb, 2009 03:51 am
Is it true that the payments you are making under the forbearance agreement do not get applied to your mortgage? That Forbearance is only a way to "hold them back from filing foreclosure" but that the original owed amount is tacked on to the end of the mortage?
Posted on: 06th Mar, 2009 11:42 am
Hi Katherine!

Welcome to forums!

In a forbearance, the lender either reduces or suspends the payments for few months. The reduced balance that you pay to the lender goes towards your mortgage. Once the forbearance period is over, you will have to pay certain extra amount along with your regular payments in order to bring your mortgage current.

Feel free to ask if you have further queries.

Posted on: 08th Mar, 2009 10:34 pm
Does mortgage forbearance negatively affect your credit?
Posted on: 07th May, 2009 11:48 am
Hi Notary,

A forbearance allows you the opportunity to prevent the loan from being reported as delinquent and catch up with the loan payments. Thus, it actually helps you to avoid negative items on your credit report. When your lender agrees to do a forbearance, they do not generally report it as a negative item which is why it does not affect your credit negatively.


Posted on: 08th May, 2009 06:08 am
Hello. I am currently in a 3 month forbearance and they say that they are going to try and leave the payments the same. Not sure for how long, but I would like for it to be long enough to sell the house. So my question is...I have paperwork to fill out about finances(I can't remember what I first reported). So I know after reporting eveything it will show that we should have a little extra money. For them to approve the payments to remain the same is it ok to show extra income or to show it as that we have no extra?
Posted on: 25th May, 2009 12:07 am
Hi Jamie,

The lender will approve the forbearance if they are convinced that your various sources of future income will help you be current on the loan or assist you in qualifying for a repayment plan or a loan modification at the end of the forbearance period. Thus, I believe you need to show a little bit of extra income so the lender knows that you will catch up with the payments once the forbearance period is over. But you should also not show too much of extra income as the lender can reject the forbearance thinking you can afford your current monthly payments.
Posted on: 26th May, 2009 01:54 am
I am currently on a forebearance contract until August. At the end of my forbearance, am I required to pay for the the three months that I am delinquent plus resume my monthly mortgage?
Posted on: 29th May, 2009 08:11 pm
my wife lost her job a little over a year ago, im disabled and receive workers comp and soc sec and we are almost 3 months behind on our mortage payment and we are doing a loan modification now. do we still try to make some kind of payment or will they let us do a forbearance so we can lower it for right now
Posted on: 14th Sep, 2009 10:43 am
If you want to protect your credit report you want to make payment on time

Also its a good idea to to check with the lender and see what they are expectign during this time
Posted on: 14th Sep, 2009 06:10 pm
Hello, I have been approved for forbearance, and my Mortgage company has me scheduled to pay the next 2 month at normal payment, then it jumps up almost 300 dollars extra a month until Oct. of 2010, this would put my family in a worse situation than before and I am quite concerned. Any advice as to if this is usual? From reading other sites I was under the impression that this would help me... thanks in advance
Posted on: 12th Nov, 2009 05:02 pm
here's the joke. my wife and i both have fico scores over 850. never been late on a payment on anything in 30 years. had two slow years of work, burned through my savings on the house. the cheapest we could find in the market 5 years ago. first house. all lenders said no worries, rates will be great for years to refinance. the year i got in i made over $160,000. close to $200,000 combined. combined both my wife and i make over 70,000 normally. never went to hawaii, all cars paid off, no cable tv. need a bit of help and none of our creditors will even so much as let me skip one month payment to catch bills up. joke is many of our friends who have been footing the bill for this country for 30 years are all scrambling for apartments. well, i guess at least that way we'll have more in our pocket to keep bailing out the banks. we're walking from it all. not worth the headaches. quality of life is more important than a crappy house. the great american nightmare. unless you are super wealthy or have help. do the deed in lieu. short sale is nightmare.

p.s. out of all of our friends who have done short sales, deed in lieu, begged for (or paid) to get a modification and gone into foreclosure not one of them or myself has had the bank come back and say,l help you with a modification. do you see any posts here referencing that? we have been trying to get a modification for 9 months. they string you along saying hey you forgot to check this box or dot that so they can squeeze every last cent out of you before the ship finally sinks. do yourself a favor; find a nice apartment while your credit is still intact if it is and take care of your survival first because no one will be there to help when you are out on the street and homeless.
Posted on: 20th Dec, 2009 07:40 pm
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