FEATURE
Understanding Forbearances By Melissa Martorella, Geraci LLP
A
natural disasters, unemployment, or unexpected injury. This form of
assistance
will
not
eliminate
the amount owed on the affiliated mortgage, as the borrower will sign an agreement obligating them to repay the loan in a specific time frame.
forbearance is the process
obligated to repay the remaining or
of
Forbearances can range from a fairly
deferred amounts back.
straightforward
offering
borrowers
a
temporary reduction in the
arrangement
with
your borrower (a temporary payment
amount they pay on their regular
A forbearance is a tool implemented
deferral, as an example), to a complex
installments or a periodic deferment
to
are
agreement to help a borrower navigate
of mortgage payments. Debtors opting
experiencing
hardship
through a loan default (including
into forbearance agreements will be
due
such
staged payments, requirements to sell
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assist to
borrowers financial
circumstances
that
as
