Loan Forbearance

A foreclosure alternative for temporary financial hardships
 

How a Forbearance Works

If you are experiencing a temporary financial hardship and can not pay the full amount of your monthly mortgage, then you might consider asking for a forbearance.

A forbearance, sometimes called a special forbearance, is an option where the lender arranges a repayment plan for the homeowner that can include a temporary reduction or suspension of monthly loan payments in order to prevent foreclosure.

How to Qualify for a Forbearance

You are most likely to be eligible for a forbearance if you can show that your financial hardship is only temporary, and you have the intention and ability to make regular payments in the foreseeable future.

If you are considering negotiating for a forbearance on your loan then it couldn't hurt to get some free advice before contacting your lender. Talk to a nonprofit housing consultant from a HUD-approved agency and find out how likely you are to qualify for a forbearance based on your individual mortgage and financial situation.