Dec 112008
Forbearance
Forbearance is a formal, written agreement between the homeowner and the mortgage servicer to reduce or suspend monthly payments for a specific period of time. This means that for a period of time, the homeowner would either pay only a portion of their regular mortgage payment or not make any payments at all. At the end of the agreed-upon period, the homeowner would be required to resume regular monthly payments as well as pay additional funds to make up for the past due amount. During the time that the payments are either suspended or reduced, the homeowner would have the opportunity to resolve the financial hardship they are facing.
Terry Platt
