A Forbearance Agreement is where the mortgage company agrees to take the payments you are behind and spread them over time or tacks them on to the back of the loan.(instead of having 300 payments left you might have 310). It’s a great idea if the reason you were behind was a one time occurrence. But if you have lost your job or if there is another event in your life that has drastically changed your ability to pay, then this might not be an option for you.

             You can be very creative with this. We once had a client who was 16 months behind. He was upside down in his property by $40,000. The bank took a one time payment of $5,000.00 and tacked on the rest to the end of the loan. They knew that if they took the property back (the average cost of a foreclosure is $50,000) they would lose more money so it was worth the risk to them. Once again the plan has to work and make sense.  The mortgage company doesn’t want to revisit the issue in another 3 or 4 months so you must be prepared to stick to the agreement you make with them.

             If you have question or need help feel free to contact us.