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Is a mortgage forbearance delay an option?

On Behalf of | Aug 10, 2021 | Foreclosure Defense |

Challenging financial times could make it difficult for people to keep up with their bills, and Florida residents who are unable to meet their obligations may face foreclosure. For those worried about losing their house, mortgage forbearance could provide a solution to financial struggles.

Seeking help under a mortgage forbearance request

Borrowers could ask their lenders for mortgage forbearance when they suffer from economic hardships. For example, a request may seem reasonable when someone suffers from job loss or medical issues that impact earnings or savings. The mortgage lender could review the request for forbearance and, if approved, the borrower reduces their mortgage payment amounts or outright pauses them.

Loans backed by the federal government would be eligible under the program. A VA- or USDA-backed loan would be among those that meet the eligibility requirements.

Mortgage forbearance doesn’t represent a long-term plan, though. Usually, lenders agree to forbearance for a limited amount of time. Once the borrower’s financial situation improves, the terms might go back to what they originally were.

Addressing foreclosure action

It’s possible for a forbearance request to be denied. After denying a request, the mortgage lender might move ahead with foreclosure steps. The borrower may then feel that nothing will save the home because their financial troubles make paying the monthly premiums difficult, if not impossible.

Litigation centering on a valid foreclosure defense might help someone save his or her home. Perhaps the person only needs a few months to recover enough financially to make mortgage payments. Litigation may help with procuring the necessary amount of time to get fiscally above water once again. The court may look favorably at the borrower’s situation, so avoiding foreclosure might be possible.