If I am in foreclosure, how much time do I have until I can utilize my forbearance option?

There are times when borrowers fall behind on their monthly instalments, which can soon transform into a challenging situation. There might be a default notice on its way, and a foreclosure following on its heels. Depending on the state laws and lending policies, the lender would however have to wait for the stipulated grace period of around ninety days to expire before starting the foreclosure process. Additionally, all unpaid instalments would add up and the longer the borrower goes without making the payments, the more difficult it would be to catch up with all arrears. So if you are in a similar situation, you can utilize the forbearance option during your grace period to defer your foreclosure for some time. The other route would be to look for loan modification options. You would of course need professional support for this, and Loan Modification Depot can provide you all necessary assistance during this process. It is one of the reliable loan modification specialists in the market today.

90-1How does it work?

Just like its name suggests, forbearance provides a temporary reprieve to the borrower with the lender agreeing to postpone or reduce mortgage payments for a specific time frame. Per the agreement, the lender would defer the foreclosure process till the forbearance period ends. The terms and conditions would however vary for each lender. It is advisable that a borrower utilizes the forbearance option only if he is facing a temporary financial crunch, and would be able to catch up with all payments as soon as the situation improves. As a leading loan modification company, Loan Modification Depot can help you make this a smooth process.

90Extension of agreement

In case the situation of the borrower doesn’t improve by the time the forbearance agreement ends, the lender might consider extending it. Also, the lender might want to go for a short sale, which means allowing the borrower to sell the property for lesser than what is owed to the lender. This is better than going through a foreclosure and Loan Modification Depot can help you get this done.

It makes sense to opt for professional support while opting for forbearance. Get in touch with Loan Modification Depot today for a smooth and hassle free process.