Homeowners often find themselves in a financial crunch. When this happens, making monthly mortgage payments can be difficult. However, several lenders offer solutions to borrowers who have financial difficulties to help them avoid foreclosure. Foreclosure can result if you do not make efforts to pay for your mortgage or ask for a deferral.

The fact is that mortgage payments can be deferred and this is often called a “forbearance.”

Forbearance is an agreement between your lender and you to delay a foreclosure. Homeowners that may have problems making monthly payments. To avoid foreclosure, your lender may offer you a temporary fix that may consist of reduced payments, higher payments to catch up past due amounts or defer your monthly payments for a certain amount of time. Often, the decision will come down to whether you can truly afford your home and if you have a solution to start paying again.

Forbearance is usually for temporary financial problems.

The first thing you need to do is to contact your lender the moment you know you are going to be late for payments. You will be able to find out what options a lender can give if you communicate with your lender at the soonest possible time. You have to be ready to talk to a number of people from your mortgage company as you will likely be routed around to a few people to get the answer you need.

When you do contact your mortgage company, ask for options. Ask if a deferral on mortgage payments is possible for your situation. Usually, lenders can give a reduction on charges for late payments in cases of job loss or emergency scenarios. However, you must be willing to show proof.

You must be able to prove that you are experiencing hardship before you can be given a deferral.

Lenders require proof of your inability to pay temporarily. Income statements and bank statements can serve as proof of your inability to pay. You should also be able to provide a signed statement assuring your lender that you are making efforts to come up with payments. A deferral may be faster when you guarantee your lender that you will pay. However, if you cannot pay for your monthly mortgage payments already, it may be better to sell your home. A foreclosure might not be a good thing.

You should also communicate with your lender throughout the process. Lenders are more than willing to work with you when you take the initiative to communicate with them. It may be a difficult process to undertake since it requires a lot of paperwork and time. However, it will be worth the effort if you are able to keep your home.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.