Understanding The Special Forbearance Process

If an FHA borrower suffers financial problems by losing his or her job or experiences some other type of temporary loss of income or unexpected financial expenditure, such as a health emergency, he or she may be able to request a special forbearance agreement from his or her lender.  This agreement can lower or slow down the borrowers monthly payments for a certain period of time.  This procedure is called a special forbearance.  In order to have your special forbearance approved, the borrower must have at least three delinquent payments.

In most cases, this agreement stipulates a borrower must repay all delinquent payments over a certain number of months.  These repayments will be added to the regular monthly payment as part of the repayment plan.  A special forbearance can be terminated if the mortgagor abandons the property, the mortgagor informs the mortgagee that he or she won‘t be able to fulfill the term’s agreement, or the mortgagor allows an installment payment to be delinquent for sixty consecutive days from the date of last payment.  After the sixty day period is up, the mortgagee has ninety days to start foreclosure proceedings.

If you’re facing a foreclosure and you want to sell your property, try contacting these Santa Ana Realtors to assist you.



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