Save Your Home with a Mortgage Forbearance Loan

By Sheryl Landrum
CMR Columnist

If you are three or more mortgage payments behind on your home loan and have received a pre-foreclosure notice or notice of default from your lender and are worried about a mortgage foreclosure, call your lender and ask about a mortgage forbearance loan instead.

Lenders do not want borrowers to default on their mortgages and a forbearance loan may help you maintain your home. A forbearance loan is not a new home loan, or a refinancing of your existing mortgage, but an extension of your current loan instead. How does it work?

A forbearance mortgage is a written agreement by the lender and the borrower to add the defaulted mortgage payments to the balance of the existing home loan and even delay the payment of the mortgage for a short period of time. This allows the homeowner some time to either sell his home or possibly refinance it to restructure his debt. Timely repayment is imperative to maintaining the agreement and if there is a second mortgage in place, it must be maintained as well.

Protect your credit from going bad and save your home. If you are in trouble with your home mortgage, pick up the phone and call your lender today. Lenders can lose money on home foreclosures and have developed mortgage forbearance loans to aid those borrowers in need. If you need additional information, go to HUD web site or call a loan officer today to get the help you need.

About the Author
Sheryl Landrum is a Senior Loan Officer with Charter Funding in Carlsbad, California.

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