Mortgage Forbearance – can it prevent foreclosure of my house?

I hope i did the right thing. we were behind on our mortgage july and august and my bank offered a mortgage forbearance which is new to them, they are doing this to help prevent people from losing their houses.
What it does, if not familiar, it wont refinance, it just takes up to 3 payments that you are late on and spread that over the loan for a yr or possibly 2. I did it for one year.
the only thing about it is that if we are late they dont have to go through a 30 day letter, they can go right to forclosure. So that scares me about mortgage forbearance. but instead of paying 2 payments plus sept 1st payments.
It made our payment go up just over another $100/month, which is scary, but at least we are caught up.
anyone else doing anything like this?

I am going through the same thing right now. I would prefer to go through mortgage forbearance instead of the foreclosure process. I was so upset about this situation and was glad to start making regular payments plus a little extra. It is only for a year and I can afford it. I am still looking toward the future and working with a real estate agent to see if I can time the market to sell the house and possibily make some money off of selling it. I will be putting in on the market soon. I am hopeful that it will sell. My problem is not the price, but finding someone who will qualify for the mortgage.

Good luck with selling your home, i know around here houses are not selling very well and if they are they are selling cheap. I know what you mean about finding someone who would qualify for mortgage forbearance, things are tough right now.
We got our house on a repo in the first place over 6 yrs ago. the house is over a hundred yrs old, needed lots of work, well still does, its all money! But when we first moved in we had to invest in all new wiring and a new box, which was quite a bit for us at the time. I know if we did sell we would get more than what we bought it for. Unfortunatly we live in town and our taxes are nuts so our escrow is higher than our principal payment!! that is what is hurting right now, other wise out payment wouldnt be much over $300 and i like the escrow there is no way we could have came up with $1100 for summer taxes : ( and we dont even get anything for it, still have to pay seperate for our water/sewer.
hope you sell at the price you are looking for, good luck : )

i was the guest that just responded bdouble, looked like i was signed in , but guess i was wrong lol
take care

How does mortgage forbearance work?

James, if you read the first post above, I believe that explains how mortgage forbearance works.

James, if you get this loan you are already 3/4 of the way
through the foreclosure, one slip up you don't have a
way out ahead of the foreclosure sale. It's risky at best.

well we did the mortgage forbearance, we took the 2 months we were behind and had it stretched out but itcould only go out 11 months because we have a balloon mortgage and it is up in sept next yr so it raised our payment about a hundred $$$ : (
But at least it helped us when we needed it, we have to watch very close that we are not late, or they will be right there on us.
thanks

To a homeowner, foreclosure is a shocking experience. When foreclosure takes place, it is extremely costly to the homeowners because not only have they lost their home, they have also lost any equity they may have built up in the property. (Equity is the difference between the true market value of the property and the balance owed and/or the total amount of all liens against the property). Along with the loss of all equity, people losing their property due to foreclosure also lose the amount of their original down payment and any money spent on improvements since they bought the home.

As we mentioned earlier, there are many reasons why property (home) owners find themselves in the type of financial trouble that could result in foreclosure.

hello this is mike i arrange a webminar ,and provide training mortgage forbearance training To a homeowner, foreclosure is a shocking experience. When foreclosure takes place, it is extremely costly to the homeowners because not only have they lost their home, they have also lost any equity they may have built up in the property. (Equity is the difference between the true market value of the property and the balance owed and/or the total amount of all liens against the property). Along with the loss of all equity, people losing their property due to foreclosure also lose the amount of their original down payment and any money spent on improvements since they bought the home.

As we mentioned earlier, there are many reasons why property (home) owners find themselves in the type of financial trouble that could result in foreclosure.

i am trying to do loan modification on my 2-nd home. i don't know what documentation they require and bank don't tell me. I can't afford loosing it, i worked too hard for 20 % downpayment. Price went down a lot and i have 5 y.fix loan interest only. I less than 1 1/2 year, it will be adjustable loan & i am going to be stuck with it. No refinancing would be possible because of the market prices so low. Well, i am stressed.

Loan Modifications do they really exist? Does anyone have a positive experience they would like to share and any helpfull advise/information that would help me. I have been painfully working with Litton Loan since 1/09. Not going any where fast.
Help any one!

Mortage Forearance saved us from foreclosure. We own a brand new "luxury loft" that, after moving in, we discovered had structural issues with the exterior masonry wall of our unit. Because the builder refused to take responsibilty for the damage we were forced to sue the builder at a cost of $60,000 so far. Because of this, we fell behind on the mortgage and had to ask the mortgage company for assistance. Afte 6months of pleading our case to them they accepted our petition for forebearance and it has bought us much needed time while we are waiting for our court date to arrive next month. No one ever tells you about these options until it is too late. I'm just glad that I was persistent. Now we will be able to keep our home and are working with the mortgage company towards a loan modification because of all the damage to our home.

I have been out of work due to an auto accident at work since Feb. this year. I am bearly making my house payment.I must have help to pay my auto payment @ food. I was talked into getting a equity loan by my bank at Suntust. I was told that if I kept the loan 6-12 months I could get my 2 house loans combined at a lower rate. My mortgage is 6% @ my equity loan is 13.65%. they now refuse to combined then now. I have used my credit card to the max to pay my bills. The bank told me 2 months ago they could help through the mitigation dept. After wanting 1 month, I am now told I must wait until I am 1-2 months behind on my loan before considering any loan help. In other words, I must ruin my credit totally before any consideration at all. If they refuse to help me, I would be out of a home with my credit ruined. I called my congressman in Ga., Mr. Nathan Deal. His office told me this is why he was against this so call loan bailout.It doesn't make any since to make a person ruin his credit before even considering any help. His office has more than 50 complaints by people just like me. If I could get my loan modified I could keep my house without ruining my credit. Why does the news media not bring this situation up instead of praising obama and congressmen who has put our comtry's citizens in this dilemma?

My husband and I were very happy that our Lender (GMAC Mortgage) was welling to assist us by placing us in Mortgage Forbearance for 5moths. My husband and I never heard of it, so we went ahead and agreed to it. To make the long story short, we end up having to add $10549.11 on top of Pricipal Balance for the months that we have missed and our monthly payment also went up. Supposedly, my Lender reassured us that they will work on getting our house in Loan Modification while being in Forbearance. Turned out that they could not Modify the loan due to Loan is under FHA. They figured that out after 5months of us in more debt. Ridiculous...Therefore, I do not recommend Mortgage Forbearance. You will end up being in square one with your mortgage.

does mortgage forbearance damages your credit