An Overview of Mortgage Forbearance: What Is This And What Should Homeowners Know?
Current times are tough and there are a lot of homeowners who are having trouble making ends meet. Therefore, they are looking for ways to remain financially afloat as they assess their options. One option that people might have heard a lot about is called mortgage forbearance.
It is critical for everyone to understand what mortgage forbearance is and how this might be able to help them during these challenging times. Importantly, it is also important for people to know what mortgage forbearance is not.
What Does Mortgage Forbearance Do?
For those who are currently facing financial challenges, mortgage forbearance might be helpful. The goal of mortgage forbearance is to allow people to temporarily stop making payments toward their mortgage. This is particularly helpful when someone is looking for a new job or when families are struggling during a recession.
Depending on whether someone has a government loan or a private mortgage, their options for mortgage forbearance might be different. Therefore, it is critical for everyone to speak with their lender directly about mortgage forbearance before deciding this is the right option. Even if someone qualifies for mortgage forbearance, they still need to apply for it, as not everyone will be granted it. Otherwise, people risk becoming delinquent on their payments, which could lead to serious consequences.
Common Misconceptions About Mortgage Forbearance
It is also important for people to know what mortgage forbearance does not do. Even though mortgage forbearance will not hurt someone’s credit (as they will remain current on their loan), mortgage forbearance does not mean the mortgage is forgiven. It is possible that interest may accumulate on the loan when someone is not making payments, so this is critical to clarify. Or, it could take longer to pay off the loan. Finally, everyone who is applying for mortgage forbearance needs to understand how long this forbearance will last. Everyone has to make sure they know exactly when their monthly payments are going to resume.
Consider Using Mortgage Forbearance
Anyone who is having trouble keeping up with their mortgage payments should consider applying for mortgage forbearance. This can be a useful option for helping people stay in their homes without harming their credit scores or becoming delinquent on their loans.
Categories
- Around The Home
- Awards
- Bankruptcy History
- Budget
- Chapter 7 Bankruptcy
- Construction Loan
- Credit
- Credit Scoring
- Environmental Awareness
- Escrow Tips
- Fair Housing
- Federal Reserve
- FHFA
- Financial Crisis
- Financial Fraud
- Financial Reports
- Foreclosure
- Holiday Tips
- Holidays
- Home Building Tips
- Home Buyer Tips
- Home Buying Tips
- Home Care
- Home Care Tips
- Home Decorating
- Home Financing Tips
- Home Maintenance
- Home Mortgage
- Home Mortgage
- Home Mortgage Tips
- Home Mortgages
- Home Seller Tips
- Home Selling Tips
- Home Tips
- Home Values
- Home Values
- Homebuyer Tips
- Homeowner Tips
- Housing Analysis
- Housing Market
- Investment Properties
- Market Outlook
- Mortagage Tips
- Mortgage
- Mortgage Application
- Mortgage Guidelines
- Mortgage Rates
- Mortgage Tips
- mortgage-rates-whats-ahead-september-17-2012
- Organization Tips
- Personal Development
- Personal Finance
- Rankings
- Real Estate
- Real Estate Definitions
- Real Estate Tips
- Real Estate Trends
- Selling Your Home
- Student Loans
- Taxes
- The Economy
- Travel
- Uncategorized