A forbearance can help a homeowner avoid foreclosure and keep his property. Forbearance is a temporary halt or reduction in mortgage payments that permits a borrower time to work through a difficult financial situation and catch up on missed payments. Special forbearance is available for homeowners who have loans backed by the Federal Housing Agency (FHA.) A homeowner can qualify for an FHA forbearance when he loses his job or has a sudden loss in income because of other conditions, such as a death in the family or serious illness.
Contact your lender. Inform the creditor you want to apply for the FHA’s special forbearance application, since the program has to go through your loan servicer, and have your payment history reviewed for eligibility purposes. Request all the necessary paperwork and forms be sent or faxed to you whenever possible.
Collect the required documents. Proof of income is necessary, such as pay stubs and previous year tax returns. Copy any bills you have, for example expenses that are medical or utility charges. You’ll have to show why you cannot manage to make the loan payments in full in the time of this program. Document your present fiscal resources, such as the balance in your retirement or bank accounts.
Describe to the creditor your finances will improve. The objective of a forbearance is to permit a borrower in a temporarily poor financial situation to maintain the home. You need to indicate that your financial hardship is just short-term and You Will be able to continue to make the rest of the loan payments in full after the forbearance period ends
Contact the FHA National Servicing Center for Assistance with your lender. You can get to the center at 888-297-8685. The agents in the center can help you with your creditor and any problems you encounter while attempting to obtain a forbearance on your mortgage, as per the Department of Housing and Urban Development (HUD), the government agency that oversees the FHA.
Contact a HUD adviser for Assistance. HUD housing counselors can help you with the forbearance procedure. Locate the housing counseling agency in your town using the counseling bureau search attribute on HUD’s official website. Telephone HUD in 800-569-4287 to utilize an interactive program to find an agency. Consult with the agency about any possible charges for this service before your appointment; many providers are free.
Negotiate the terms of the forbearance. Forbearances are granted for a particular period of time, like 4 months. Be sure that the time you’re given by the lender is enough for you to be able to earn the payments once the forbearance period finishes.