What is Mortgage Forbearance? What Will Happen Afterwards?
There are new state and federal programs to provide “Forbearance” on mortgage payments. However, NJ homeowners should understand what a “Forbearance” will do.
A forbearance agreement is one type of short-term relief being offered by many loan servicers. The loan servicer agrees to reduce or suspend your payments for a set amount of time. This provides for a temporary period of time when you do not have to make your full monthly payments. However, the payments are not waived or forgiven; you will have to pay them back. In many situations, you will have to make the missed payments in a lump sum at the end of the forbearance period.
It is very important that you understand what will happen at the end of the forbearance.
If you need help to understand your options, Ira J. Metrick can be reached at firstname.lastname@example.org or 732-462-7000.