Forebearance Agreements

[Souix]

What is the name of your state? Oregon


I am in the process of negotiating a potential short sale on one of my listings. My client is only a month behind in her mortgage payments and intends to just let it go back to the bank or sell it quick. When I called the lender regarding the short sale, they said they would be sending a "hardship package" to the homeowner and that would start the beginning of the short sale process when she provided the information and sent it back. She received the packet with a cover letter that stated that she should complete all the information requested (i.e. income statements and expenses) to enter a Forebearance Agreement. My question is, what is a Forebearance Agreement and what does it have to do with a short sale?

 

[Souix]

Please disregard this question, I have found the answer

 

[HomeGuru]

Please post the answer for others who may have the same question.
Thank you.

 

[Souix]

A Forebearance Agreement is an agreement that is reached between the mortgage holder and the homeowner temporarily postponing a foreclosure action so that the homeowner can pursue other remedies in either bringing the loan current or going the short sale route.

In my case, I had contacted the lender to see about a potential short sale on my listing. What they sent to my client was a packet asking for numerous financial items so that the mortgage holder can determine whether or not to accept a Forebearance Agreement in order to negotiate a short sale. This makes sense to me now.

For anyone else reading this that is in foreclosure or default, there are numerous websites and glossaries you can find on the internet just by doing a search for "foreclosure procedures".

I still need an answer to my other question about the Foreclosure Eviction process, should I have posted that under the Landlord/Tenant section?

 

[HomeGuru]

Ok, I'll get right on it.

 

[Souix]

Ok, I'll get right on it.

Much appreciated!!

 

[HomeGuru]

Anytime.