Just wondering what I should ask for in regards to a forbearance agreement with a lender. The homeowner is 11k behind but now has about 5k in savings and can once again afford her mortgage payments. The lender says they can not tack on the rest of the payments onto the back of the loan but they can work out a 12-24 month payment plan.
I just wanted to know what type of agreements others have worked out with lenders to minimize their expenditures.
I recently heard on an audio that should a forbearance take place, the HO needs to pay bythe 1st of the month, not the 15. If they pay late, even 1 payment, they go back into foreclosure again.
12-24 months is typical, 36 months is probably the max.
May require a “down payment” to get started.
Plan must include all late charges, fees, advances, delinquent amounts.
Plans can typically be set up with due dates other than 1st of month, depending on servicer could be more than one pmt per month.
They will monitor and “break” the plan if payments are late but will probably have some grace period.
And as the market worsens, and more interest-only, option ARM and other products go sour there will be more emphasis on loss mitigation as a solution.
There was a loss mitigator recently on a tele-seminar- yes thats how I get lots of free info!! Forebearance need to be paid by the 1st, if they are even late once, they go back into foreclosure. Yeah, it was one of Jeff’s loss mitigators talking about the various options HOs have
steve
Problem is banks are so different in their procedures that one bank that that loss mit works for may have a 1st of month due date but other banks may not. Thats the problem trying to “generalize” these kinds of things and sell in a course.