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What is forbearance?

Failure to make payments on your Florida property can lead to foreclosure on your mortgage and loss of your home. Obviously, this is not an outcome that you want to see happen. As a matter of fact, your mortgage lender does not want to foreclose on your mortgage either. Foreclosing on your property forces the mortgage lender to take a loss and saddles it with a property that it then needs to dispose of.

Therefore, if you contact your lender as soon as you are having difficulty making mortgage payments, the representative you speak to is usually willing to explore alternatives with you. One of these alternatives may be a forbearance. According to the Consumer Financial Protection Bureau, a forbearance is a temporary arrangement in which your lender either waives your obligation to make mortgage payments or reduces your payment amount. 

To qualify for a forbearance, you usually need to demonstrate some sort of financial hardship due to an unforeseen adverse event. An example would be the loss of a job, which may also qualify you for relief through the Hardest Hit Fund program under the state's administration. Other examples of hardship include suffering a severe illness or injury, which can keep you out of work even while you incur medical expenses, and experiencing the effects of a disaster, such as a house fire or hurricane. 

Your mortgage lender likely has strict eligibility guidelines that you must meet to qualify for a forbearance. Even if you do qualify, keep in mind that it is only a temporary solution meant to give you time to gain a firmer financial footing and resume your normal payments. 

The information in this article is not intended as legal advice but provided for educational purposes only.

 

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