They could have gotten a real modification, but settled for whatever the lender recommended to them. They settled for what is called forbearance. Here’s how it works.
A forbearance does not reduce your payments. It doesn’t reduce your back payments, or reduces them very little. The lender just allows you to catch up on all the debt over a set time period.
You start paying your normal payments again. In addition, you also have to pay extra every month to catch up the back payments.
Many homeowners are so desperate to keep their home that they agree to this. It is the first thing recommended by their lender and they just accept it.
In most cases, the homeowner could have received a real loan modification with genuine relief. In some cases this is good for the homeowner.
They didn’t experience a big drop in income and can afford the payment. But, if their income was reduced, then they are setting themselves up for failure. Why?
Many lenders have a policy that they won’t negotiate a loan modification with someone who has already defaulted on a forbearance or loan modification.
No, they won’t admit this in public. And it usually isn’t a written policy. They just simply put people asking for a new modification on the back burner.
The bottom line: Don’t accept a forbearance unless you can afford the payments. If you do accept it and later default, then you are putting yourself at a much higher risk of losing your home.
We offer a loan modification guide to consumers. Here is what we cover in the Stop Foreclosure Institute’s Loan Modification Insider Secrets Guide.
* An easy to understand, Step By Step Guidebook.
* How to write a Hardship Letter that gets your loan modification approved.
* Three big loan modification mistakes and how to avoid them.
* Loan Modification from the lenders point of view.
* How the Making Home Affordable Program can help you.
* What not to do so you don’t risk being carted off to jail.
* How to calculate your budget properly to increase your chance of success.
To request this kit, please click here to request a copy.
Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.
Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank. This is a FREE for you, all you have to do is call or email us today.
Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.
Dave is a Realtor with Prudential Utah Real Estate - Bountiful.
Phone: 801.651.0707 Email: utahhomesaver@gmail.com
Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.utahhomesaver@gmail.com
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