Posted on: 20th Jul, 2009 10:13 am
I was one of the people who bought a house with a 100% finance FHA loans during the housing boom. With the economy giving me some pretty hefty increase in my expenses, I needed to sell my house. Well, I am set to close on our house on August 7th, if the appraisal and home inspection go through. The offer we received is approximately two thousand less than what I owe. I called the mortgage company and told them I would like to avoid foreclosure/bankruptcy/short sales, but asked if there was a way to pay off the balance without doing any of those. They said forebearance--they can give me partial payments for the remaining balance until I get a better paying job. Is there interest on forebearance payments or does that negatively impact my credit score?
you are getting a good offer.
If your lender is ready to sign a Forbearance Agreement with you, it will help you a lot. it is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her payments. A forbearance agreement is not a long-term solution for delinquent borrowers; it is designed for borrowers who have temporary financial problems caused by unforeseen problems
If your lender is ready to sign a Forbearance Agreement with you, it will help you a lot. it is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her payments. A forbearance agreement is not a long-term solution for delinquent borrowers; it is designed for borrowers who have temporary financial problems caused by unforeseen problems