What is Loan Forbearance?
What is Loan Forbearance?
Forbearance is simply an option by a lender to delay or lower your mortgage payments. In return, you will eventually have to pay your lender back. This allows you more time to get your financial house in order and catch up on payments without having to worry about paying in full on time each month.
Forbearance is offered to those in hardship. Whether it’s a job loss, or covid-19 complications, or a healthcare related issue, it is there to help homeowners.
There are different options for forbearance, depending on who you have your loan with, what state the loan is in (Pennsylvania, New Jersey, etc.) and the loan type. You may be able to delay your payments for say, 3 or 6 months, and then owe all the past due money all at once. Or you can pause your payments for a certain number of months, then just add those months to the end of your mortgage. You may also be able to pay a portion of your owed mortgage with your current payment. Example: Your mortgage is $1,000, but you pay $1,500 for “x” months until your forbearance is paid back.
How To Get Help
There are many ways to get help. You could reach out to a Housing Counselor to start.
For New Jersey, you can check http://www.njhousing.gov/foreclosure to learn more about the Hardest Hit Fund. Philadelphia / Pennsylvania does not offer such fund, but you can contact the Pennsylvania Housing Finance Agency.
Check with your specific mortgage company as some are offering some form of forbearance during covid-19. Most importantly, be sure to read all the terms and fine print. It is important to be aware of any stipulations or repayment terms.
If You Are Facing Foreclosure
If you believe you are now in a situation where foreclosure is eminent, you can either consult an attorney or simply try to sell the home as soon as you can, if possible, to avoid further consequences. Especially with the ongoing presence of covid-19, many homeowners are not in the same financial situation they were a few years ago.
Here at Property Buyer Connect, we are local experts who work around the clock in the Greater Philadelphia area, including New Jersey. We specialize in working with people in difficult situations and help them sell their homes fast and hassle free, so they can get out from the burden of home ownership.
If you are facing foreclosure or considering forbearance, and you live in the Philadelphia or South Jersey area, or its surroundings, give us a call at 215-770-3122 or send us a message anytime. We’d be happy to help!