Most lenders are glad to negotiate a forbearance. The one advantage is that the process is much shorter. You avoid the lengthy and troublesome loan modification process. A forbearance can normally be approved in two weeks to a month. Contrast this with the one to six month process associated with loan modifications.
The big drawback with a forbearance is that it doesn’t reduce your payments. In fact, the first 12 months are tough. Here is why. You are re-paying the back payments during those 12 months.
This means your monthly payment actually increases. If you were paying $800 a month before, you are paying $1,150 during the forbearance. Many homeowners accept a forbearance only to default because they can’t afford the higher payments.
A good loan modification is what they really need. However, the lender will be reluctant to approve it. Why? Because they already defaulted on the forbearance. This is why I recommend you only ask for a forbearance if you can afford the higher payment.
Was the original reason you defaulted because you could not afford the payment? In this case, a loan modification is a better option. Our Sacramento loan modification kit has the instructions you will need to get a loan modification approved.
We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification.
Thanks for reading this, John Hayes.
John is a real estate agent at RE/MAX Gold.
Phone: 530-306-3316.
John Hayes specializes in loan modification assistance and short sales in Sacramento California. Sacramento Loan Modification Help, Sacramento Short Sales.
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