A mortgage forbearance is an agreement between a mortgage lender and a borrower to delay a foreclosure. It is an agreement in which the lender agrees to temporarily suspend payments on a mortgage and the borrower agrees to a mortgage plan that will allow the borrower to catch up on payments later on.Things To Know About A Mortgage Forbearance:
If you go into a forbearance on your existing loan, current guidelines from Fannie and Freddie say you ARE NOT ELIGIBLE to get a new conventional loan if you have deferred any payments because while credit suppression is applied, you are actually delinquent.
IF YOU CAN PAY YOUR PAYMENT, THEN PAY IT.
A forbearance is there for anyone who needs it, but the intention is for people who have lost their jobs or income and cannot pay.
IF YOU JUST WANT PAYMENT RELIEF,
you will be better off to refinance out of a short-term mortgage and into a 30-year mortgage to get payment reduction.
A good rule of thumb is:
TO GET A NEW MORTGAGE, YOU HAVE TO BE PAYING YOUR EXISTING MORTGAGE ON-TIME.
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