Forbearance


The best way to keep a home, stop foreclosure when a homeowner has a temporary financial hardship is a forbearance plan.

A forbearance plan is an agreement made between a lender and the homeowner where the lender allows the homeowner to miss a couple of payments (or forgives a couple of already missed payments) and then requires the homeowner to make up the payments later – in most cases by making payment-and-a-half payments for several months in a row after the missed payments.

The disadvantage to a forbearance plan agreement is that most people are either not eligible for these plans, or those that are, are not able to ever catch up once the payment-and-a-half payments period begin. They just cannot afford the new payments.

Galveston Home Buyers can recommend service providers that can help negotiate these plans for homeowners or Galveston Home Buyers can simply buy the home and solve the problem.