An option you might want to consider as a way to prevent foreclosure is a mortgage forbearance. It’s commonly used for temporary financial bearing situations such as short periods of unemployment or poor health. In the simplest of terms, mortgage forbearance enables you to temporarily stop making your mortgage payments. As for mortgage rates and interest, they continue to accumulate on the mortgage forbearance and is added to the remaining balance of the loan. You are generally also asked to sign a forbearance agreement that states when the lender will require you to pay the amount you owe.
Once the forbearance period comes to an end, you are once again obliged to make full payments on your home loan. While mortgage forbearance may only serve as temporary fix, it does buy you some time to overcome your financial state,and is a far better option than loosing the home you worked so hard to purchase.
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