You may be experiencing some financial problems, and no one would blame you. Who isn’t spared that difficulty today? If you are a homeowner and you are feeling the financial pinch, you may want to reassess your situation and make moves to prevent foreclosure on your home.
Now most people would advise you to go for a mortgage modification, or a mortgage refinancing. But do you know about mortgage forbearance agreements?
This is actually an agreement between you and the lender if the loan modification or refinancing is not in the picture. Here, the lender will agree not to foreclose on your property even if they have the legal right to do so. While you agree to pay a certain amount every month which will be treated as the amortization on your home, even if it is a lower rate than the original. This will still allow you to lower your debts with the lender.
However, the mortgage forbearance agreement is not a long term solution, and this is not also for those who are delinquent on their payments. This agreement is only possible for borrowers who are experiencing a temporary financial step back caused by unpredictable events like unemployment or hospitalization.
So if you find yourself in this situation, and you fear for the safety of your home, do not hesitate or wait for a long time to go to your lenders and seek their advice. There are solutions to preventing foreclosures. If you take the solutions, then you will have a better chance at holding on to your homes.
The main mistake that most of those whose homes were foreclosed were that they did not immediately look for solutions to their problems thinking that everything would just go away. Well, as history showed us, it did not go away and neither is it improving much for that matter.