If you’re struggling to make your mortgage payments, you may be eligible for forbearance. This is a temporary suspension of your monthly payments that can help you get back on track.
However, it’s important to understand what happens when your forbearance ends.
Mortgage forbearance is when a lender agrees to let a borrower temporarily stop making payments. The goal is to help the borrower get back on track financially so they can eventually resume making their regular mortgage payments.
Forbearance isn’t always easy to obtain. But if you contact your lender early on and explain your situation, you may be able to work out a forbearance agreement.
Here’s how it works: During the forbearance period, you pay nothing or only a portion of your monthly mortgage payment. After the forbearance period ends, you typically resume making your regular payment and may have the option to make smaller catch-up payments or pay off the entire missed amount all at once.
Here are 3 repayment options for missed payments during forbearance:
•Option One: Add the missed payments to the end of your loan term. This is called forbearance repayment plan or modified repayment plan.
•Option Two: Make larger monthly payments until you’ve caught up on the missed payments.
•Option Three: Pay off the entire forbearance amount in one lump sum.
If you’re considering forbearance, here are a few things to keep in mind:
- Forbearance isn’t a long-term solution. It’s meant to be temporary so you can get back on your feet financially.
- You’ll still owe the money you didn’t pay during forbearance. That means your mortgage balance will likely go up, which could extend the life of your loan and increase the total interest you pay over time.
- Your credit score could drop if you enter forbearance. That’s because forbearance appears as missed payments on your credit report.
If you can’t afford your mortgage payment and forbearance isn’t an option, selling your house fast may be the best solution. Atlanta-House-Buyers.com has extensive experience working with forbearance situations, and we can help you get the best possible outcome.
We’ll work with you to come up with a custom solution that meets your needs and helps you move on from your current situation. Contact us today to learn more about how we can solve your Mortgage Forbearance problems.
