What is a Forbearance Agreement?

What is a Forbearance Agreement Florida Foreclosure Defense Lawyers

If you have been struggling with your finances, it can make it very difficult to pay your bills, including your mortgage payments. In instances like this, you may be looking for a way to catch a break to get your finances back in order. A forbearance agreement is an option that can allow you to temporarily pause your payments. Please keep reading to learn more before giving us a call to set up a free consultation.

Why Might You Need a Mortgage Forbearance?

There are many reasons why a forbearance agreement may be of interest to you. Financial issues can happen to anyone. You may have had a sudden death in the family, a divorce, or a loss of income that you have unexpectedly had to deal with. Any one of these situations can leave you scrambling to get your finances in order.

If you are worried about making your mortgage payments, or you have already failed to meet your payments, it is likely time to reach out to our lawyers to discuss your options.

You can benefit from forbearance if you feel that you need a little bit of time to get back on your feet and that you will be able to eventually return to your payments once you have settled your financial issues.

Difference Between Mortgage Forbearance and Modification

If you have heard of forbearance, you have likely also heard of a modification. These are both options for someone who is struggling to pay their mortgage. They are, however, quite different.

One of the biggest differences between modification and forbearance is the permanency of the agreements.

A mortgage modification will permanently affect the loan payments that you have. Modifications can include lowering your monthly payments, lengthening the timeline of the loan, and changing the interest rate on the loan.

Meanwhile, a forbearance agreement is temporary. While you can apply for an extension to your forbearance, you cannot pause your payments forever.

What If I’m Denied Forbearance?

If you fail to get your lender to sign a forbearance agreement, it is most likely due to an error in your application or them rendering you able to pay your monthly mortgage payments.

If you have important financial information missing in your application, your lender is not going to be able to grant you a forbearance because they don’t know enough about you.

If you have been denied a forbearance, it may also be because they looked at your finances and determined that you have enough income compared to your debts and bills to be able to afford your mortgage payments without needing a pause from them.

If you have been denied, please reach out to us right away.

Call Our Florida Foreclosure Defense Lawyers

If you are interested in a forbearance agreement, please do not hesitate to reach out to our Florida foreclosure defense lawyers today. We would be glad to answer any of your questions about forbearance during a free consultation. Give us a call today to set up your first free consultation.

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