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Mortgage Forbearances: An Alternative to a Home Foreclosure

By Sheryl Landrum
Mortgage Credit Problems Columnist


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Getting behind on your mortgage payments is a homeowner's worst nightmare, and losing your home to foreclosure proceedings is a scenario that none of us want to experience. However, due to creative lending practices that allowed 100% financing, interest rates that are now adjusting upward, and a flattening in home appreciation, there are many homeowners now facing mortgage foreclosure. If you get behind on your mortgage payments, are you automatically destined for a home foreclosure?

There is a remedy for mortgage foreclosures and it is called a forbearance mortgage. If you are behind in your mortgage payments, call your lender and ask for a forbearance mortgage which will allow you to delay making house payments for a short period of time. A forbearance mortgage is a written repayment agreement between the mortgagor and the mortgagee to repay and reinstate the asset after a minimum of three house payments have been missed. This allows the homeowner to avoid foreclosure proceedings and to have his mortgage reinstated in good standing by giving him time to sell his home or come up with a financial resolution to keep it. A much better alternative to a home foreclosure! Make sure, however, if you have a 2nd mortgage as well as a 1st mortgage that you do not neglect the lender on your 2nd. Foreclosure proceedings can also be initiated by a 2nd mortgage lender who has not been paid.

Lenders do not profit from mortgage foreclosures and are generally willing to try and aid a homeowner in preventing his or her home foreclosure. If you are behind in your mortgage payments and need assistance, please call your current lender today to get your mortgage back on track. If you need additional help, call a trusted loan officer or go to http://www.hud.gov for guidance in preventing mortgage foreclosures.

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