License# 3225554
Forbearance
Understanding Mortgage Forbearance
A mortgage forbearance agreement is when a mortgage lender allows for a pause or reduction in a delinquent borrower's mortgage payments for a set period of time. It is often used to provide temporary relief to homeowners that are struggling to make on-time payments, or in the face of economic crisis, such as the most recent coronavirus outbreak. The main objective of the forbearance agreement is to provide the borrower with a solution that avoids foreclosure and provides financial relief.
Tim Hanavan at RE/MAX Premier Group not only works with clients across Central West Cost Florida communities to buy and sell homes, but also aims to be a valuable resource to clients seeking information and professional guidance through mortgage forbearance, loan modifications, and more. Learn more about what options may be available to you by contacting Tim Hanavan at
813-545-7457 today!
Mortgage Forbearance Agreements Versus Loan Modifications
The key difference between a forbearance agreement and a loan modification is this - one is meant to be a temporary, short-term solution, while the other is a permanent adjustment to your monthly mortgage payments. Forbearance agreements are created with an end date built-in, allowing the borrowing a set amount of time to catch up while avoiding foreclosure. A loan modification is meant as a permanent adjustment for unaffordable monthly mortgage payments and involves the renegotiation of the terms of the loan itself, rather than temporary suspension or reduction of the monthly payments.
Do I Qualify for a Mortgage Forbearance Agreement?
Applying for forbearance comes down to the type of loan a borrower has. Federally-backed loans, such as HUD/FHA, USDA, and VA loans, qualify for special mortgage forbearance as outlined in crisis legislation. Private mortgages are not covered by these federal legislations, and require negotiations with the private servicer to see if you may qualify for any type of temporary pause or reduction in mortgage payments.