Mortgage Forbearance Explained

A mortgage forbearance is a tool that you could potentially use if you are in trouble with your mortgage loan. Here are a few things to consider about mortgage forbearance rules, and how they work.

Mortgage Forbearance

A mortgage forbearance is something that many lenders offer as a way to help those that have gotten behind on their mortgage payments. With this type of plan, the lender will allow you to hold off on making your mortgage payments for a certain amount of time. For example, they might give you three months in which to start making your mortgage payment so that you can get caught up financially. Then, whenever the mortgage resumes, you will have to continue making your mortgage payment as planned. The mortgage payment will most likely be increased in order to make up for the lost payments.

Considerations

With this mortgage feature, you will need to determine if you qualify for the program. Check with your lender to see if they offer this type of feature and what the qualifications are. In some cases, after you utilize a mortgage forbearance program, the lender will be able to initiate foreclosure without notifying you if you are late on your payments.