What is Mortgage Forbearance? Well, according to Merriam Webster Forbearance is a refraining from the enforcement of something (such as a debt, right, or obligation) that is due. Mortgage forbearance holds the same value; it is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. The main thing to note is, you will still have to pay back that loan amount; it is not a forgiveness of the loan and many times that payment is due all at once.
This can be of great help when a major tragedy hits such as fire, flood, or unforeseen damage, and especially now during this time of job insecurity. It has helped many people out of situations and allowed for some breathing room with other obligations, but what happens when time runs out on that much needed help and the full amount becomes due? There are actions that have been put in place for situations just like that and in Texas there are programs to aid families and individuals facing the due date of forbearance. However there are eligibility requirements for these programs and a request must be made by June 30, 2021. Some lenders will not send out reminders, it is up to you to research your specific situation.
What about the families and individuals who have run out of options and are in pre-foreclosure or already facing foreclosure? Well, hope is not lost, there are still options to save your home or at least gain some equity if you are about to lose everything. Bankruptcy is an option, but that is another beast and could greatly impact your chances of buying another home in the future (it won’t be impossible, but there are a lot of hoops you will have to jump through to make it happen). The next, and in my opinion the safest or quickest is option, is to sell your house. There is more wiggle room going this direction; you can list it with an agent (this process could take longer than expected, especially if you have a time limit) or you can sell it to an investor, like us. The great thing about investors is they pay cash, so there is never a waiting period for funds and when you work with Mr. Deeds Buys Houses you can close fast or when you need to. In many cases we pay moving costs and some times we take over mortgage payments so that your credit is saved. We are a company that prides themselves on helping families move forward from the circumstances, that caused problems and anxiety. We are a company made of families for families and we want to help as many of them as we can. With 22 years of experience, we have handled all kinds of different cases and have helped countless individuals with our creative real estate solutions.
Hopefully this information has shed some light on what the next steps are or has made a way for you to create a plan of action. If your forbearance is due and you are already in the pre-foreclosure process, give us a call (713-999-3905) or fill out the form. Even if you don’t sell your house to us, we offer free consultations that will help you gain knowledge.