options for keeping your home
Forbearance As An Option
If you’ve suffered a short-term financial setback and need temporary relief from your mortgage, your lender may agree to offer you“forbearance.” How does forbearance work?
- Your lender forgives any payments you have missed.
- The lender reduces your interest rate so you can make lower payments.
- You are allowed to make lower payments or no payments for a brief time.
“C” is correct. The forbearance period usually lasts 3 - 6 months. If the loan term isn’t extended, your later payments are likely to be higher until you bring the loan current. A special forbearance is open to some homeowners with FHA-insured loans. It allows partial payments for up to 18 months. The lender also may offer an interest-free loan or advance funds to help you make up past payments.