Mortgage forbearance is when your lender or mortgage servicer allows you to temporarily pause or reduce your payments for an agreed upon timeframe. This timeframe is called the forbearance period.
A forbearance is meant to help homeowners through a short-term financial hardship so they can get current on their payments and avoid foreclosure. It is not intended for people who have difficulty affording their mortgage in general.
It’s important to note that forbearance does not mean forgiveness. When a homeowner enters into a mortgage forbearance agreement, they are responsible for repaying any missed payments at the end of the forbearance period.
The Mortgage Forbearance work depending on your situation and what your lender allows, your mortgage forbearance period can last for one month, several months, or even a year.
Under the CARES Act, homeowners with a federally backed mortgage (insured or guaranteed by Fannie Mae, Freddie Mac, VA, FHA or USDA) have a right to request a forbearance period up to 180 days, or approximately six months. This can be extended another 180 days if needed, for a total of almost 12 months.
While a mortgage is in forbearance, the loan servicer will not initiate a foreclosure on the home. In return, the homeowner repays the sum of all missed payments that accrued over the forbearance period in addition to making regular monthly mortgage payments.
Source:https://fhmtg.com/2020/04/07/mortgage-forbearance-pros-and-cons/
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