Life is unpredictable. No matter how much we try to plan for the future and allocate our finances accordingly, events happen that can change our situation. Unexpected hardships can arise if we unexpectedly lose our jobs or become ill, for example.
When unexpected hardships arise, we may struggle to be able to pay necessary expenses such as our mortgage for a certain amount of time. As a result, it's common to fear foreclosure. If you are struggling financially and want to avoid foreclosure, seeking special forbearance could be a great option for you.
What is a special forbearance?
Forbearance is the act of a lender offering to allow a debtor a break from repayments or a reduction of repayments for a certain amount of time. Special forbearance can be even more helpful for borrowers since they have a wider variety of loan modification options available.
If your lender offers you a special forbearance on your loan, you may have the option to delay the repayment of your overdue payments. You may also be given additional time to have a break from making repayments.
How do I qualify for a special forbearance?
Special forbearances are usually offered in emergencies, for example, after the death of a co-borrower or after the loss of a job. To gain a special forbearance, you must not have missed more than one year of mortgage repayments.
Make sure that you take action to learn more about the options available to you if you are struggling to repay your mortgage due to unforeseen circumstances. By learning more about the law, you will be able to assert your rights when appropriate.