Forbearance Plans

Temporary relief when in financial hardship.

If a homeowner has temporary financial hardship, a forbearance plan can be a good way to help save their home from foreclosure.

A forbearance plan is an agreement made between the lender and the homeowner. The lender may allow the homeowner to miss a couple of payments, or may forgive a few of payments that have already been missed. The missed payments may be made at a later date. In most cases by making payment-and-a-half payments for several months in a row, after the missed payments. This repayment plan can be structured in several different ways depending on the lender.

The advantage of pursuing a forbearance plan is that it can avoid foreclosure and keep the homeowner in their home – if all the homeowner needs is a some time to make up missed payments.

Most people, however, are not eligible for forbearance plans. Many of those who do get forbearance approval are never able to catch up once the payment-and-a-half payments begin. They simply cannot afford these new, higher payments.

If your missed payments were due to a temporary hardship (e.g. you became unemployed for a brief period of time, but quickly gained employment once again), then it is likely that your lender will agree that a forbearance plan is right for you. 

If, on the other hand, your financial hardship is ongoing (e.g. you had a loss of income that you were unable to replace), a forbearance plan will most likely be denied by your lender. 

If ongoing financial hardship is the case and the homeowner is somehow able to get the forbearance plan approved – it will only be a way to delay an inevitable foreclosure. Make sure to call Sold ASAP if this is your case so that we can explore any and all better options that may be available to you.

Common questions about Deed-in-Lieu of Foreclosure

How do I get on a forbearance plan?

You must discuss this with your lender.

Are forbearance plans guaranteed?

No, a lender will decide to allow a forbearance plan at their own discretion. 

How long does it take to get a forbearance plan?

Most lenders require 90 days to review your situation and decide whether or not to approve a forbearance plan.

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