Facing Foreclosure or Forbearance?
What Is Forbearance?Forbearance refers to an agreement made between you (the homeowner) and your lender in the event that you’re unable to pay your monthly mortgage amount for any reason. The lender freezes your payment requirements for a set amount of time. After this date, you would be required to continue your normal monthly mortgage payments, and pay back the balance owed, plus any interest or fees that accumulated during your grace period.
What Is Foreclosure?
Foreclosure is a legal process that occurs when you are unable to continue making mortgage payments, and as a result, you forfeit rights to your home. The bank or lender would take over ownership of the property."