The following is an excerpt from the continued reading we at Loan Lawyers,
LLC are involved with.
A forbearance agreement is an option that is being used by many homeowners
these days in order to avoid foreclosure and bankruptcy. And while a forbearance
agreement may not affect your credit score and may help some solve their
problems, people should be aware of the pitfalls involved. One of the
biggest problems that people have with forbearance agreements is that
many homes lack the equity needed to get a bank to accept such an agreement.
In order for the bank to feel comfortable tacking on interest and missed
payments on the back end of the loan, the lender wants to see that the
home has sufficient equity to support the extra costs. With a forbearance
agreement, the lender agrees to let the missed payments accrue until the
balloon is due, but, if the mortgage trumps the homes value, or is close
to it, the lender will not be willing to allow a forbearance agreement
to take place. Another issue with forbearance agreements is the fact that
even homeowners with equity may still not be able to handle the penalties
and interest that will be due in 1 or 2 years when they have to pay the
back payments in full. The homeowner will have to immediately begin to
make payments with a forbearance agreement and not miss any more payments
in the future, if they due they will be right back in foreclosure, and
end up losing their home.
There are many options out there. I am firm believer that modifying one's
loan may be a positive alternative. It always depends on your desired
outcome. Our firm is substantially equipped to review your financial situation,
find an option you want and process your modification from start to finish
whilst simultaneously exercising your rights and invoking the Federal
protections while you attempt to get some sound stability in the Foreclosure
storm. Come see us today in order to explore what option is right for you.
You can speak to me directly toll free at 888 FIGHT 13 (344-4813) or 954-523-4357!