Foreclosure Prevention

A forbearance agreement is one way to prevent foreclosure. A forebearance agreement is an arrangement to postpone a borrower’s monthly payment for a limited and specified time period. The loan continues to accrue interest during a forbearance. A forbearance request must be approved by your lender. Most lenders are willing to enter into such an agreement if the borrower can pay at least 50% of the mortgage arrearage or 1 full months payment and is willing to pay the remainder in 24 months.

Lenders are required by law to work with you and try to approve a forebearance agreement. Make sure you are talking to the correct person that handles forebearances and communicate everythng in writing. You have more time than you think and even if you get a court sale date on your home, you can get this extended two times before your home is sold at the auction.