How Does a Mortgage Forbearance Work?
When you’re facing a financial challenge due to sudden job loss or illness, the stress of unpaid bills certainly doesn’t improve your situation. When your mortgage is one of the bills you can’t pay, that stress level climbs through the very roof that you’re afraid of losing. It won’t take your mortgage company long to start calling you to find out when you intend to start making payments again. All banks and lenders have rules that are slightly different, but nonpayment of your mortgage will eventually lead to foreclosure, no matter how patient the bank chooses to be.
Fortunately, there are several options for avoiding foreclosure proceedings, one of which is mortgage forbearance. Qualifying for a forbearance has some strict rules, but it could possibly save your home when times are tough. Take a look to learn more about this process and whether it’s a good choice for your mortgage.