What is forebaence? how does it help with foreclosure if so?
Question:
A forbearance in regards to a house is setting up a repayment plan to avoid being put into foreclosure.
If you miss 3 payments, for example, the bank will usually want you to pay back all 3 payments at once before they will let you start making your regular payment again. This is called reinstating the loan.
But, if you talk to the bank and they set you up on a repayment plan to pay each month your normal mortgage and a portion of the amount that you are behind, then this is called a mortgage forbearance agreement. This helps with foreclosure because it does not require the homeowner to come up with the entire amount they are behind and lets them keep making their regular payment, as well.
Forbearance can also refer to the lender allowing you to miss payments, if you are facing a hardship. In mortgage situations, though, these are pretty (extremely) rare.
Good luck.
ForeclosureFish
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