When a homeowner is unable to make their monthly mortgage payments, the lender may pursue foreclosure to seize the property and sell it to recover the money they have lost. To avoid the foreclosure process, borrowers and lenders will often hammer out a forbearance plan. Forbearance means that you and the lender reach an agreement on new mortgage terms. It is important to understand forbearance. It means that you and the lender reach an agreement on new terms of the mortgage.
How Forbearance Works
The borrower will make interest-only payments over a period of a few months or enact a temporary stop in repaying the loan. Eventually, the borrower will have to make those temporarily paused payments as the debt isn’t forgiven. Forbearance is suitable for individuals that have suffered economic or financial hardships. If the economy slumps, you incur flood damage, or you lose your job, forbearance can temporarily ease your financial stress.
Can I Sell My Home while in Forbearance?
The answer is “YES”, you can sell your home while in the forbearance period. However, the amount will have to be paid back when you sell your home. In most cases, that money will be deducted from the purchase price of your home. Furthermore, you will have to pay the remaining balance on your mortgage out of the proceeds from the sale. In addition to this, the lender might extend the agreement, if you are planning on selling your home while it’s in forbearance.
Foreclosures can take months to complete and can be quite expensive. Keep in mind that the lender wants their money as quickly as possible and does not want to deal with the sale of a home that can deplete their resources and time. Selling your home means the lender will get the entire payment on the mortgage and be spared the selling process. Remember, forbearance is a “temporary” modification to your mortgage loan. Even if the lender agrees to forbearance, you still have to consider selling your property. You can discuss it with experts who know more about the process.
There is a Better Option- Homeinc
If you want to sell your home fast before it goes into forbearance or foreclosure, why not work with a cash-for-homes company like Homeinc? We can make you a competitive offer within minutes of conducting a FREE property analysis and close on the deal within 5 to 7 days or within a timeline that works for you. Best of all, Homeinc will purchase your home regardless of its condition or any repairs that need to be done. In additional, Homeinc will not charge commissions and will make sure that closing costs remain low.
Homeinc agents are here to assist you in determining what your options are. Our experts are available to walk you through the process and will answer your questions. Call or text Homein today at (888) 850-2636 to get started.