Avoid Foreclosure with a Forbearance MortgageSheryl Landrum
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Home foreclosures are on the rise, but they are not the only alternative to falling behind on your mortgage payment. If you have missed a few house payments and are worried about losing your home, call your lender today and talk to them about a forbearance mortgage.
What is a forbearance mortgage? A forbearance mortgage is not a new home loan but an extension of your existing one. It is an agreement with your lender to postpone your mortgage payments for a short period of time. Your lender will add the missed home loan payments to your mortgage--extending your loan period but allowing you to keep your house and your credit report in better standing. Your lender will require, however, that you adhere to your payment schedule in order to avoid foreclosure.
How do I get a forbearance mortgage? By calling your lender and informing them of your inability to make your house payments. Everyone loses in a home foreclosure, including the lenders, and they will want to work with you on a mortgage repayment program.
What if I have a 2nd mortgage as well as a 1st mortgage? If you have worked out a forbearance agreement on your first mortgage and have a 2nd mortgage as well, you can still end up in foreclosure if you do not keep your 2nd mortgage in good standing.
Remember, if you get into trouble with your mortgage payments, call your lender(s), discuss the situation, and ask them for a forbearance mortgage or other home loan repayment plan. This will allow you time to either sell your home, or to maintain it, without going into foreclosure.
About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage in San Diego and Prudential Realty in Bonsall, California.