Avoid Foreclosure By Forbearance

By Matt Golski

Many people are struggling to pay their mortgage payments. Foreclosure is looming in a lot of households. That's why it's important to know about forbearance.

A forbearance agreement is a special agreement you make with your lender when you're trying to avoid foreclosure. If you have been met by sudden financial hardship, or you've had problems paying your mortgage because if unsuspected circumstances, a forbearance agreement can help you avoid foreclosure.

When a lender sees bills piling up and debt rising, he is tempted to start the foreclosure process. Before this happens, be sure to talk to your lender about a forbearance agreement. If you agree on a forbearance, the lender delays his right to use foreclosure measures, providing you make a certain amount of payments in certain amount of time. If you offer reasonable payments in a reasonable time, the lender is inclined to say yes.

Forbearance should only be used when your financial problems are of a temporary nature. Of you don't see your financial situation get better anytime soon, forbearance is not for you. If this is your situation, you will be better off by going the mortgage loan modification route.

If you're thinking about mortgage loan modification, be sure to pick the right person to help you with this process. Right now, there are a lot of people that offer their services for big upfront payments. Don't be too fast to give your hard-earned money to one of these people. Make sure you have a good, reputable company to avoid losing your shirt and having nothing to show for it.

About the Author:

Matt is a professional mortgage advisor. He likes to write about mortgages and financial matters. He writes articles in English about mortgage and finance, and in Dutch about rente aflossingsvrije hypotheek and aflossingsvrije hypotheken.