The Essence of Forbearance
- Date: 2007-04-04 - Word Count: 455
Share This!
Have you encountered the term "forbearance" before? Or is this the first time you heard this term? If your answer is yes, then read on.
What do we mean by forbearance? When you say forbearance, it means a temporary delay or decrease of loan payments for the reason that the borrower is facing some financial problems. It can also mean that the repayment period will be extended. In the case of forbearance, you have to pay for the interest no matter what kind of loan you have, whether it is subsidized or unsubsidized. If you don't make up for the interest, it increases.
Keep in mind that loan programs have different types of forbearance and terms and conditions. Forbearance is not granted immediately. You need to ask for it from your loan service provider. And you also need to have a documentation for it to serve as a support for your petition.
A forbearance will only be granted if you miss the payment because of unexpected problems such as poor health. Aside from that, your request will only be granted if you're serving in a medical internship or serving in a position covered by the National Community Service Trust Act of 1993. Other condition is when you're required to pay for federal student loans which are greater than or equal to the 20 percent of your monthly gross income.
You see forbearance is another alternative that could save your house from foreclosure. Forbearance agreement with the lender is applicable if you're financial problem is only temporary. In this kind of agreement, the lending institution reduces the payments for about six months or less. In return you agree to repay it when the reduced payment period has ended. The payment includes an extra amount that you and the lender agreed upon to fill in all the payments that you fail to fulfill under the period of forbearance. This is aside from the regular amount that you must pay. More often than not, the period of repayment does not last for more than a year.
However, you should remember that this line of tactic is only valid when your facing a financial difficulty that is only temporary. It is a must that you prove to the lender that you are qualified for the forbearance agreement. If your request is granted, you'll be able to keep your house and at the same time the lending institution will not suffer from any loss.
On the whole, forbearance is indeed one of the best things that can solve your problem of foreclosure.
If you want to sell your house fast we can buy your house for cash and close in a matter of days NOT weeks. Visit us online at www.Soldin2Days.com
What do we mean by forbearance? When you say forbearance, it means a temporary delay or decrease of loan payments for the reason that the borrower is facing some financial problems. It can also mean that the repayment period will be extended. In the case of forbearance, you have to pay for the interest no matter what kind of loan you have, whether it is subsidized or unsubsidized. If you don't make up for the interest, it increases.
Keep in mind that loan programs have different types of forbearance and terms and conditions. Forbearance is not granted immediately. You need to ask for it from your loan service provider. And you also need to have a documentation for it to serve as a support for your petition.
A forbearance will only be granted if you miss the payment because of unexpected problems such as poor health. Aside from that, your request will only be granted if you're serving in a medical internship or serving in a position covered by the National Community Service Trust Act of 1993. Other condition is when you're required to pay for federal student loans which are greater than or equal to the 20 percent of your monthly gross income.
You see forbearance is another alternative that could save your house from foreclosure. Forbearance agreement with the lender is applicable if you're financial problem is only temporary. In this kind of agreement, the lending institution reduces the payments for about six months or less. In return you agree to repay it when the reduced payment period has ended. The payment includes an extra amount that you and the lender agreed upon to fill in all the payments that you fail to fulfill under the period of forbearance. This is aside from the regular amount that you must pay. More often than not, the period of repayment does not last for more than a year.
However, you should remember that this line of tactic is only valid when your facing a financial difficulty that is only temporary. It is a must that you prove to the lender that you are qualified for the forbearance agreement. If your request is granted, you'll be able to keep your house and at the same time the lending institution will not suffer from any loss.
On the whole, forbearance is indeed one of the best things that can solve your problem of foreclosure.
If you want to sell your house fast we can buy your house for cash and close in a matter of days NOT weeks. Visit us online at www.Soldin2Days.com
Related Tags: we buy houses, las vegas real estate, we buy las vegas houses
Your Article Search Directory : Find in Articles
Recent articles in this category:
- 5 Reasons to Buy Jasper Real Estate
Jasper is a small town in North Georgia and it is growing rapidly. Since North Georgia Foreclosures - Ellijay Real Estate
Ellijay Georgia has always been known for it's outdoor activities and seasonal festivals. Downtown E - How to Deal With Blocked Drains
A blocked drain is an occurrence that happens eventually to all households. You may have experienced - The Benefits of Hiring a Plumbing Consultant
Your dream home may not always be brand new, with fresh paint and home essentials. There are certain - The Worst Mistake You Can Make When You Apply to Rent a Home
A whole new class of people has become renters and potential renters in America during the last thre - State of Individual Real Estate Markets
Everybody is well aware of the hit that the real estate market has taken over the past three years. - Thoughts on Avoiding the Landlord Trap
I've heard several people say they would never invest in a multifamily rental property because they - An Idea to Increase the Bottom Line of Your Investment Property
Are you pretty sure that you've already maximized the income coming from your property? If you've cl - Finding the Value of a Piece of Investment Real Estate
There is a lot of confusion about how much investment property is really worth. We'll look at three - Arkansas Land For Sale - Search Engine Optimization and Your Website
If you have Arkansas land for sale and are interested in advertising it on your website I have a few
Most viewed articles in this category:
- How High Did Home Prices Really Go
The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets wer - New Homeowners Tips for Household Safety
With so many items on their ¡°buying a home¡± checklist, few homeowners take into considerati - Truth About VA Foreclosures
Many people now days are finding themselves out of work and not being able to make the mortgage paym - Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of cours - Finding The Perfect Roommate On Craigslist
Craigslist, Roommates, and The Concerns Craigslist is "great" when it comes to looking for housing - The Forgotten Secret To Selling Property - Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best pro - Get Amazing Results Selling Real Estate Online
This is the age of the internet. Why not take advantage of the widespread use of the internet to ad - Dallas Real Estate Information
In the United States, Dallas is considered as the second leading state according to the area. If any - The Largest Private Equity Indian Real Estate Deal
In the largest private equity deal won by the real estate sector, Morgan Stanley Real Estate has inv - Fractional Real Estate Ownership
Fractional ownership of vacation ski condos is growing in popularity. Park City Utah a popular ski t