If you are struggling to make mortgage payments, a mortgage forbearance might be a good option for you. It’s one of the many resources available to homeowners who are struggling to make monthly payments due to financial hardship.
It’s important to note that while a mortgage forbearance typically postpones your payments, it doesn’t erase your debt or mortgage. It also can’t stop the foreclosure of your home should you fail to meet the requirements of the agreement.
When it comes to options for postponing mortgage payments, you may wonder how foreclosure is involved. There are a few ways that forbearance impacts foreclosure, and we’ll discuss all of them to help you identify if forbearance is the best option for you.
If you need mortgage payment relief and are exploring different options, you should consider consulting an attorney as soon as possible. Joshua Denbeaux is an experienced mortgage foreclosure attorney who has been fighting for homeowner rights for over 15 years. Contact Denbeaux Law today to discuss your options to delay or stop foreclosure.
How Does Forbearance Work?
Mortgage forbearance is an agreement between you and your lender in which you agree to temporarily pause your mortgage payments. Depending on the factors of your specific agreement, your mortgage forbearance could include a variety of terms. The terms of your forbearance could include some or all of the following:
- A grace period for mortgage payments
- Waived or refunded fees
- No new foreclosures
We often see forbearance get confused with repayment plans or loan modifications. While there are similarities between the three, there are also distinct differences that homeowners should be aware of.
Foreclosure During Forbearance
If you were actively being foreclosed on before your forbearance, your forbearance agreement should include a clause stating that your foreclosure will be put on hold for the length of the agreement. This means that your bank or lender cannot foreclose on you during the time you’re under forbearance.
Your forbearance might include this clause even if you were not actively being foreclosed on. If you are under forbearance and your lender is pursuing foreclosure, you should contact an attorney immediately, as your homeowner rights are likely being violated.
When Does a Mortgage Forbearance End?
The length of a mortgage forbearance depends on your specific agreement, but they typically last anywhere from three to six months.
It’s important that you have a plan for how to handle your mortgage once your forbearance does end. Unless your forbearance agreement included waived mortgage fees, you’ll be required to begin paying your mortgage again, plus the amount that wasn’t paid during your forbearance.
There are a few different ways that you can pay back your fees once your forbearance is over.
- Lump-sum payment: repay the total amount at once
- Repayment plan: you would create a plan with your lender to pay slightly more than your mortgage payment each month until you’ve paid back your missing payments
- Partial Claim or deferred payments: if you aren’t able to pay more than your mortgage payment each month, all of your missed payments can be added to the end of your loan, and you won’t have to pay the missed payments until the end of your original loan term
- Loan modification: this is a change to your loan, usually extending the length of your loan term to decrease your monthly payments
Although forbearance, repayment plans, and mortgage modifications have many similarities, they also have distinct differences you should be aware of before you decide which option to pursue.
Other Resources for Stopping Foreclosure
If you are struggling to make your mortgage payments and are worried about losing your home, but a mortgage forbearance isn’t an option, there may be other ways you can delay or stop foreclosure. Depending on the details of your case, you may be eligible for the following:
- Loan modification
- Loss mitigation
- Repayment plans
For those who are financially able to, you may also have the opportunity to stop foreclosure in its tracks by paying off the sum of your delinquent mortgage payments. We understand this won’t be an option for everyone, which is why we recommend consulting an experienced foreclosure defense attorney. A lawyer may help ensure all potential courses of action are explored based on the resources available for your particular situation.
Contact a Foreclosure Attorney Today
If you are currently in a mortgage forbearance agreement and your lender is actively pursuing foreclosure, you should contact an attorney as soon as possible. Depending on the terms of your forbearance agreement, your lender’s actions may be illegally violating your rights.
If you’re struggling to pay your mortgage or working on an alternative mortgage payment plan with your lender, we recommend contacting an attorney to make sure you’re doing everything you can to delay or prevent foreclosure. Consulting with an attorney may help you explore all of your options and help you protect your rights with any action you choose to take.
Joshua Denbeaux is an experienced foreclosure attorney who can help you discuss the specifics of your current situation and help you plan for the future. If you are concerned about your home being foreclosed on, contact Denbeaux Law as soon as possible to schedule a free consultation
