Forbearance

[LoriDolan]

What is the name of your state? Florida

I had posted the question of short sale vs. deed-in-lieu of foreclosure (which sounds better, I guess, than voluntary foreclosure). A friend who is also an accountant has now told me to ask my mortgage company for something called forbearance, where I would ask to be excused from payments for a set time, but agree to pay the taxes and the monthly maintenance. The payments owed would be tacked onto the total mortgage due. In the meantime, I could work on selling my house, and hopefully get rid of it before the time was up. Personally, not only have I not heard of this, but I find it difficult to believe a mortgage company would let someone live in a house scot-free. Can anyone shed some light on this? My finances are eroding quickly, and I've already put the paperwork in for them to look at the deed-in-lieu...because the mortgage company told me it will take 90 days to review either that or a short sale. And since most buyers won't want to wait 90 days to move into a home, I guess I have no choice but to do a deed-in-lieu.

Thanks.

[HUD-1]

Forbearance is for someone that wants to stay in their home, but has had a temporary decrease in income/increase in expenses. If you were out of work and delinquent, a forbearance can lower your monthly payment down to what you could afford for a short period of time until you are back to work. It does not apply to permanent losses of income/increases in expenses or those looking to sell. A preforeclosure sale allows for time to list and sell, and if that is not successful, do a deed-in-lieu. The lender may make extension on the PFS if you have a buyer and a closing is scheduled...