Gainesville FL - A forbearance is when you catch up all your back payments and continue paying your original mortgage payment. This is a good option for many. However, it doesn't reduce your payment as much as a loan modification does.
Most lenders are glad to negotiate a forbearance. The one advantage is that the process is much shorter. You avoid the lengthy and troublesome loan modification process. A forbearance can normally be approved in two weeks to a month. Contrast this with the one to six month process associated with loan modifications.
The big drawback with a forbearance is that it doesn't reduce your payments. In fact, the first 12 months are tough. Here is why. You are re-paying the back payments during those 12 months.
This means your monthly payment actually increases. If you were paying $800 a month before, you are paying $1,150 during the forbearance. Many homeowners accept a forbearance only to default because they can't afford the higher payments.
A good loan modification is what they really need. However, the lender will be reluctant to approve it. Why? Because they already defaulted on the forbearance. This is why I recommend you only ask for a forbearance if you can afford the higher payment.
Was the original reason you defaulted because you could not afford the payment? In this case, a loan modification is a better option. Our Gainesville loan modification kit has the instructions you will need to get a loan modification approved.
Thanks for reading this, Chris Curry.
Chris is a real estate agent at Keller Williams Gainesville Realty.
Phone: (352) 332-6611.
For more info visit
http://www.gainesvilleshortsaleblog.com/Chris Curry and his team specializes in loan modification assistance and short sales in Gainesville Florida. Gainesville Loan Modification Help, Gainesville Short Sales.
