What is loan forbearance? Loan forbearance is when your lender agrees to let you temporarily pause your mortgage payments or make reduced monthly payments because of financial hardship.
Mortgage forbearance can allow homeowners time to improve their financial situation without the pressure of large monthly house payments. When you have a forbearance agreement in place, the lender also will not start foreclosure proceedings.
Depending upon your unique circumstances and whether you can prove to your lender that you are in financial hardship, loan forbearance may be an option for you to avoid missing payments and having your home foreclosed on.
However, forbearance does not relieve you of the obligation to pay your mortgage. Once the forbearance period ends, you will be required to pay back the payments you missed.
If your hardship situation is directly or indirectly related to the COVID-19 pandemic, you may still qualify for forbearance under the federal Coronavirus Aid, Relief and Economic Security Act, or CARES Act. Initial forbearance relief under the CARES Act is available as long as the COVID-19 national emergency is in effect.
Turn to an Experienced Florida Real Estate Lawyer for Guidance
If you are in danger of missing mortgage payments and wish to learn whether you qualify for forbearance, or if you are already in forbearance and it is ending but your financial circumstances have not improved, reach out to Florida real estate attorney Carlos M. Amor.
He can counsel you about the potential options you may have to help you pay your mortgage and avoid foreclosure on your home. Do not delay in getting experienced legal guidance when your home is possibly at stake.
Call our Plantation law firm today at (954) 453-7200 to arrange a free initial consultation. For our clients’ convenience, Attorney Amor offers free consults, by phone, via video meeting, or in person. Reach out today.
Why Choose Our Florida Loan Forbearance Attorney?
Carlos M. Amor Provides Effective Solutions for Homeowners in Financial Distress
When you are facing difficult economic times and are in danger of not being able to pay your mortgage loan, an attorney with an in-depth understanding of state and federal real estate laws can provide options to help you keep your home, including counseling you about mortgage forbearance.
Carlos M. Amor is a knowledgeable real estate and mortgage foreclosure defense attorney who has practiced law in Florida for over 15 years. He has helped many homeowners get the most successful solution for their situation and avoid foreclosure when they are having trouble making monthly mortgage payments. Attorney Amor . . .
- Is highly recognized by his peers in the Florida legal community for his ethical standards, legal knowledge, and communication skills
- Is passionate about helping people who are undergoing financial hardship but want to keep their home
- Is a Miami native who has lived and worked in Florida his entire life and has a deep commitment to the state and its citizens
- Provides free consultations over the phone, in person, or via video, whatever method is most convenient for clients.
When you choose Florida loan forbearance attorney Carlos M. Amor to help you resolve your mortgage payment difficulties, you can trust that he will treat you with dignity and respect as he works to provide a strategic and tailored solution for your unique situation. You can read what clients have to say about the exemplary services Attorney Amor provides here.
How Our Florida Loan Forbearance Lawyer Can Help You
Delivering Well-Informed Guidance for Difficult Mortgage Problems
When you are having difficulty paying your mortgage, Carlos M. Amor can help you understand whether you may qualify for forbearance and whether it is the best solution for your circumstances. He can help you identify the documentation you will need to show hardship and assist you in requesting forbearance.
If your forbearance is ending and you are worried about how you will start making regular payments again and pay off the missed mortgage debt, depending upon your individual situation, our Florida loan forbearance lawyer may be able to help you . . .
- Get an extension of your mortgage forbearance
- Work to negotiate fair repayment terms with your lender
- Defer forbearance payments until the end of the mortgage term, i.e., when you sell your home, refinance with another lender or pay off your mortgage loan
- Pursue a loan modification with your lender that reduces your interest rate, length of your loan, or other terms to make payments more affordable.
Attorney Amor will examine the details of your circumstances and advise you about your rights to your situation and work to achieve a satisfactory solution with your lending company.
Learn how our Florida loan forbearance lawyer may be able to help you by reaching out today to arrange a free consultation. Call us at (954) 453-7200.
Requesting Mortgage Forbearance from Your Lender
To ask your lender for a forbearance agreement, it is best to contact them in writing so that you have a record of your request. In your letter, explain that you are experiencing financial hardship and the reason for the hardship, such as a job loss, reduced working hours, serious illness, or other reasons, and the length of time you are requesting forbearance.
You may be asked for proof of hardship (if your request is not COVID-19 related). Proof could include bank statements or other documentation your lender requests. If you are financially able to make a partial payment, tell them the amount you can pay. If you are approved, do not stop making payments until you receive approval in writing. If you are denied forbearance, you may be able to appeal.
Loan Forbearance Lawyer Explains Qualifying Under Cares Act
According to the Consumer Financial Protection Bureau, if your hardship is directly or indirectly due to the COVID-19 pandemic and you have a federally-backed mortgage, you may qualify for forbearance under the CARES Act. Mortgage servicers cannot ask you for proof of hardship for pandemic-related forbearance requests for federally backed loans. Federally-backed mortgage loans include:
- Fannie Mae
- Freddie Mac.
For HUD/FHA, VA and USDA-backed loans, homeowners can request initial mortgage forbearance as long as the COVID-19 National Emergency is in place, which is currently through the end of February 2023 unless the government ends it earlier or extends it. For Fannie Mae and Freddie Mac loans, there is currently no deadline to request an initial COVID forbearance.
If you need help requesting initial mortgage forbearance or an extension, contact loan forbearance attorney Carlos M. Amor for help.
What Happens When Mortgage Forbearance Ends?
When your mortgage forbearance period is close to ending, your lender should contact you about paying back the missed or reduced payments. If they do not contact you, be sure to reach out to them before forbearance ends so that you can ask for an extension if you need one and can qualify, or so you can otherwise make payment arrangements. Most importantly, communicate with your lender or have your attorney talk to the lender—do not ignore the fact that your forbearance is ending.
Most lenders will not require a lump-sum payment of all the payments missed during the forbearance period, but rather will allow the money to be paid back over time through a scheduled repayment plan. If your loan is federally backed, you will not be expected to pay in a lump sum as these lenders cannot require it. Non-federally backed lenders may, however.
If your forbearance is ending and your lender has contacted you about making a lump-sum payment or is not providing repayment terms for paying over time that fit your budget (remember that during the repayment period, you will also be required to make your regular mortgage payments), do not hesitate to contact Florida loan forbearance lawyer Carlos M. Amor for legal advice.
Attorney Amor has helped many people achieve satisfactory solutions for paying their mortgages and may be able to negotiate with your lender for a repayment plan that you can afford.
Additional Solutions for Meeting Mortgage Obligations When Forbearance Ends
If you do not qualify for a forbearance extension and are not in a position to begin repaying missed payments while also paying your regular mortgage payments, there may be other options available for you.
Defer Forbearance Payments
One possible solution for paying back missed payments while not overextending yourself financially is by deferring forbearance payments until the end of the mortgage term.
What this means is that the money you owe from the payments you missed during forbearance will be paid back to your current lender when you sell your home in the future, when you pay your mortgage loan, or if you refinance with another lender.
Modify Your Existing Home Loan
A modification to a loan is just what it sounds like, which is a change to your loan terms. With a modification, the interest rate you are paying may be reduced or the length of the loan may be extended.
If the bank agrees to modify your existing loan, you could reduce what you must pay each month to an amount you can afford and thus be able to make your payments and keep your home.
Refinance Your Loan
If you are able to negotiate with your lender to make missed payments at the end of your loan term, you could potentially pay off what you owe due to forbearance by refinancing with a different lender. Whether you can refinance will depend upon your current financial situation and whether you are up-to-date with your regular mortgage payments following forbearance. Current mortgage interest rates may also influence whether refinancing is the right solution for you.
Call us at (954) 453-7200 to arrange a consultation. Attorney Carlos M. Amor offers free consults, by phone, via video meeting, or in person.
Contact a Diligent Loan Forbearance Attorney in Florida
Reach Out to Carlos M. Amor for Trustworthy Advice
Whether you are experiencing financial hardship and wish to enter into mortgage forbearance with your lender or your forbearance period is ending and you are not sure how you will make your regular mortgage payments as well as pay back the payments that were paused or reduced, our experienced loan forbearance attorney in Florida, Carlos M. Amor, may be able to help you.
Once he understands your unique financial and mortgage situation, he will explain the potential solutions that may be available to you. If your forbearance is ending, you may qualify to have the terms of your loan modified to make payments more affordable or even defer making up the missed payments until the end of your loan term.
Call us at (954) 453-7200 to schedule a time to speak with a knowledgeable Florida loan forbearance attorney. For our clients’ convenience, Attorney Amor offers free consultations, by phone, via video meeting, or in person.