December 13, 2022
Mortgage forbearance is a temporary agreement between a borrower and a lender that allows the borrower to temporarily stop making payments on their mortgage. This can be a useful option for people who are experiencing financial hardship and are unable to make their mortgage payments on time.
Under a mortgage forbearance agreement, the lender agrees to reduce or suspend the borrower’s mortgage payments for a specific period of time. During this period, the borrower is not required to make their regular mortgage payments. However, the borrower is still responsible for paying off their mortgage, and the missed payments will need to be made up at a later date.
Mortgage forbearance can be a good option for people who are facing temporary financial difficulties, such as a job loss or unexpected medical expenses. It can provide relief by allowing the borrower to temporarily stop making mortgage payments, while they get back on their feet financially. However, it is important to note that mortgage forbearance is not a long-term solution and should only be used as a last resort. Borrowers who are unable to make their mortgage payments should consider other options, such as refinancing their mortgage or seeking assistance from a housing counselor.