subject: Gainesville Short Sale: Option #1 To Avoid Foreclosure: Forbearance [print this page] 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.
Chris Curry and his team specializes in loan modification assistance and short sales in Gainesville Florida. Gainesville Loan Modification Help, Gainesville Short Sales.
