Special Mortgage Forbearance Agreements

A special forbearance may save your home from foreclosure.

A special forbearance allows homeowners with FHA loans to delay foreclosure proceedings while experiencing financial hardship. A special forbearance may be considered when mortgage payments become three months past due.

Significance

Forbearance means to hold something back. In the case of mortgages, it means to hold back on any foreclosure proceedings and to give homeowners the opportunity to bring the mortgage back to a current status. Once a special forbearance is approved, homeowners will have at least four months to catch up the mortgage payments.

Time Frame

A special forbearance helps homeowners who are unable to pay their mortgage for a short period of time as a result of job loss or illness. Homeowners who are unable to improve their financial situation may still end up losing their home if they fall more than one year behind on mortgage payments.

Considerations

Homeowners who have a long history of falling behind on payments may not qualify for a special forbearance. Also, a special forbearance may result in penalty fees and increased interest accumulation. In some cases, one or more payments may be suspended or reduced during the forbearance period.

References

• Bankrate: Try forbearance to fix late mortgage
• Mortgages.Interest.com: FHA offers special loan forbearance program to avoid foreclosure
• HUD.gov: Special Forbearance Frequently Asked Questions
• First Home Consulting: Special Forbearance