What is Loan Forbearance?
If you are facing the possibility of foreclosure because you are unable to make your mortgage payments, you should take a moment to consult an attorney at the Malaise Law Firm. We would be happy to meet with you to discuss several options you can take advantage of that will help stop foreclosure and allow you to remain in your home. One of these options is something called a loan forbearance.
What is a Loan Forbearance Exactly?
When a lender agrees to allow a homeowner to temporarily stop making their mortgage payments, it is considered a loan forbearance. A forbearance is a good option for someone who believes their financial troubles or hardship is only temporary, as forbearance will only provide short-term relief. The homeowner and the lender agree to a set period of time during which the homeowner can defer payments temporarily, usually until they have recovered from their financial problems. Once that period has ended, the homeowner will not only be responsible for making all future mortgage payments, but he or she must also repay the deferred payments that weren't received during the forbearance period.
Forbearance is a viable option for anyone in need of short-term relief. If you are in need of long-term or permanent relief, you will be better off requesting a loan modification or even filing for bankruptcy. To learn more about the options available to you, we advise you to contact our office to schedule a free consultation. Our South Texas bankruptcy attorneys offer legal counsel to homeowners throughout Corpus Christi, McAllen, Brownsville, Harlingen, and all other areas in the Southern region of Texas. To schedule your appointment, please call (800) BANKRUPT today!