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What to know about special forbearances

On Behalf of | Nov 7, 2020 | Debt Relief |

Losing a job or getting sick can make it hard to stay current on your home loan. However, lenders in Florida and elsewhere may be willing to offer a special forbearance. This type of relief is typically available to those who have missed 12 or fewer payments throughout the term of the loan.

Your financial hardship must be temporary

To qualify for a special forbearance, you must be able to show that your financial hardship will end at a specific point in the future. For instance, it’s possible to delay mortgage payments on a home that was damaged in a natural disaster until you receive a payout from your insurance company. Medical records might be used to establish when you’ll likely recover from an injury or illness.

Contact your lender as soon as possible

It’s critical to contact your lender as soon as you think an illness, job loss or other event will create a financial hardship. The company that services the loan will likely ask for more information to verify that you won’t be able to make future payments in a timely manner. It may be necessary to submit a hardship letter and other evidence to prove that you’ve made a good faith effort to stay current on your home loan in the past.

If you’re in danger of having your home repossessed, consider partnering with a foreclosure defense professional. He or she may be able to negotiate a deal with your lender that allows you to stay in your house. This professional could also challenge the legality of the foreclosure in court or take other steps to maximize the chances you obtain a favorable outcome in your case.

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