We thought it would be helpful to review what forbearance is. We like this definition from the team at Keep Home:
Forbearance is a form of loss mitigation. It’s a formal agreement between you and your loan servicer that temporarily reduces or suspends your mortgage payments during financial hardship. The key word here is temporarily. At the end of the agreement, you must negotiate a plan to catch up.
That last part, about negotiating a plan to catch up, is very important. When discussing forbearance with your lender, questions you want to ask include: how many months can I suspend my payments, how will suspended payments be accounted for at the end of the suspension period, how will interest be handled on suspended payments, what/if any impact will this suspension have on my credit score.
The National Association of Realtors offered this information for property owners trying to understand their options. If you have questions about your options or have stories to share about your experience seeking or being granted forbearance, please reach out and let us know!