If you are a home or property owner in Ohio and are struggling to keep up with your payments, a forbearance agreement can be a lifesaver. However, this is only if you understand forbearance agreements well enough to create an arrangement that a lender agrees to and that actually helps you get out of financial trouble
Mortgage forbearance is an agreement between a homeowner and a lender that provides the homeowner with temporary relief by pausing or reducing mortgage payments. The intent is to give you, the home- or property owner, time to repair your financial situation and avoid foreclosure.
7 Essential Facts about a Forbearance Agreement
1. The Agreement Would Allow You To Temporarily Stop Making Payments, Or To Make Smaller Payments
At the end of the forbearance period, you must resolve the delinquency by making a lump-sum payment or establishing a long‐term repayment plan.
2. Forbearance Is Not Automatic
You cannot simply stop making your payments without first arranging for a forbearance – your credit score will likely suffer and you may even find yourself in default.
3. Forbearance Has Long-Term Implications
While forbearance is a lifeline to homeowners in trouble, it does have long-term consequences. Your payments may increase after the forbearance period ends, for example, and you will need to make up the missed payments somehow. Because of these long-term consequences, the use of mortgage forbearance is reserved only for severe hardship.
4. Mortgage Forbearance Lasts For A Predetermined Amount Of Time…
Mortgage forbearance usually lasts three to six months, depending on the terms of the agreement.
5. … But They May Be Extended In Some Cases
For most loans, a forbearance may be extended up to 12 months. What’s more, some loans may be eligible for up to 18 months of financial relief, depending on when the original forbearance started.
6. Mortgage Forbearance Is Not The Same As A Loan Modification
Mortgage forbearance is a temporary solution – you’ll return to making full mortgage payments when the forbearance period ends. A loan modification, by comparison, permanently reduces your payments.
7. Having A Qualified Foreclosure Defense Attorney Is Essential
Navigating a mortgage forbearance agreement can be difficult, and even the smallest mistakes in creating the agreement can have major consequences. For the best outcome possible, get an attorney who understands forbearance and foreclosure assistance in Ohio.
Contact Cozmyk Law Offices For A Free Case Evaluation
Contact Cozmyk Law for more information about getting the most out of your mortgage foreclosure. Our attorneys specialize in fighting foreclosure and raising all available defenses, such as mortgage forbearance. We are here to fight for you, and if at all possible, we can help you save your home – but you must act fast. Contact us as soon as possible to schedule your free case evaluation. You may also call us at (877) 570-4440.