What Homeowners Should Know About Mortgage Forbearance

For many Florida homeowners, a slight change in their jobs or finances can turn everything upside down. Paying the bills alone can be a challenge. Add in the mortgage, and the financial strain can be overwhelming. If you’re in this position, don’t give up. A mortgage forbearance could be the answer to your problems.

Reach out to Loan Lawyers today. Our Fort Lauderdale foreclosure defense attorneys can explain how a mortgage forbearance may relieve your burdens during this challenging time. With our firm’s exclusive focus on foreclosure defense, debt defense, and bankruptcy law, Loan Lawyers can propose solutions to help you keep your home, obtain financial relief, and restore your peace of mind. Call or get in touch with us online today for a free consultation.

What Is a Mortgage Forbearance?

Mortgage forbearance is an option that enables homeowners to stop making payments on their homes temporarily. This can be a powerful tool to help you get back on track and start moving toward financial security. Depending on the situation you’re facing and the type of mortgage you hold, you may qualify for different types of forbearance terms.

If you choose to move forward with a forbearance, any payments that the lender reduces or defers under the program will be due later. However, your options and rights may depend on the loan and the program you use. So, if you’re considering a mortgage forbearance, make sure to get solid advice from an experienced lawyer before making any decisions.

What Does Forbearance Mean Under the CARES Act?

Under the CARES Act, homeowners who are experiencing difficulties due to the COVID-19 pandemic may be eligible for a forbearance that could last up to a year. While it’s significantly easier for homeowners with a government-backed loan to obtain them, a forbearance may still be available in many situations.

But how does a mortgage forbearance work? Regardless of the type of loan you hold, an experienced forbearance lawyer can review your situation, answer your questions, and let you know if forbearance could work for you.

Is Mortgage Forbearance a Good Idea?

Whether forbearance is a good fit for you will depend on your unique needs and financial situation.

Here are some of the benefits of a forbearance:

• You can stay in your house.
• It can help you avoid late fees and foreclosure.
• While your forbearance will likely be reported to a credit bureau, it won’t be as detrimental to your credit score as a missed payment could be.

Potential cons of a forbearance include:

• You will still have to pay back the money owed once the grace period ends, which could result in higher mortgage payments.
• Unless your lender agrees not to report the forbearance to a credit agency, any future lenders will see the forbearance and may view you as a risky borrower.
• It is a temporary solution. Forbearance cannot help if you are having chronic problems making mortgage payments.

If a mortgage forbearance is not right for you, a knowledgeable lawyer can determine whether other alternatives could work given your circumstances.

Get a Foreclosure Defense Lawyer Today

Not sure about a mortgage forbearance? Get in touch with Loan Lawyers now. We believe that good people shouldn’t have to live with financial stress and anxiety. That’s why we’re here to help. We’ve saved more than 3,000 properties from foreclosure in South Florida and provided debt relief to thousands of deserving families. Let us help you, too.

Call or contact our Florida foreclosure defense lawyers now for a free case review. There’s no obligation.