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Portland Foreclosure Quick Clicks > Government Mortgage Help > Collection Laws in Oregon |
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 Mortgage forbearance or repayment plan
Alter your mortgage payments for a short period of time Ask your lender if you can reduce or suspend your monthly payments for a short period of time. This option may be available if you, for example, are expecting funds that would help bring your loan current, or if there is a firm possibility your income will increase and your financial situation will improve. You will be asked to document these possibilities. Depending on your exact situation, your lender may be required to offer you a solution to repay your missed payments and avoid foreclosure with a Mortgage Forbearance Agreement. These special repayment plans are called "Special Mortgage Forbearance Agreements" and you could request this type of payment plan from your lender's Loss Mitigation department or the Mortgage Forbearance Agreement Department. A special mortgage forbearance agreement is a written repayment agreement between a lender and a mortgagor that contains a plan to reinstate a foreclosure loan that is a minimum of three payments due and unpaid. If you qualify for a Special Mortgage Forbearance agreement, you may be allowed to postpone monthly mortgage payments for a minimum of four months. While there is no limit on the maximum number of months for a mortgage forbearance agreement, at no time may the agreement allow the delinquency to exceed the equivalent of 12 monthly payments. Steps in negotiating a mortgage forbearance or repayment plan Step 1: Contact the Lender Remain in close contact with your lender if you fall behind in making payments because of a job loss, medical expenses or other major life disruption. Lenders can lose tremendous amounts of money by allowing a home to go into foreclosure, so they have strong incentives to modify the loan. Contact a lender by mail if you believe that you may start to fall behind on your mortgage. The earlier that you inform the lender of your issues, the greater the likelihood that you will be able to successfully negotiate forbearance. Step 2: Negotiating Forbearance Unlike a loan modification, the forbearance agreement is not intended to be a permanent alteration to the mortgage. Instead, it's intended to allow homeowners to get a reprieve from the foreclosure process while they recover financial stability. Write a foreclosure forbearance request explaining your financial circumstances after you become late on payments. Explain why you have had trouble meeting your obligations, and outline your plan to repair your financial situation and become current on your mortgage again. Write only between 500 to 1,000 words, and avoid using sentimental language. Describe your situation in terms of the facts only. Estimate when your financial situation will improve. Step 3: Further Negotiation Once the bank receives your request for forbearance, a loan officer will decide whether to pursue further negotiations. You may receive an immediate rejection if the lender determines that it can't quantify the risk of extending the mortgage agreement. If the lender chooses to continue negotiating with you, you'll likely be asked to bring information about your finances to a meeting during which you will discuss the details of the forbearance agreement. In general, you will be allowed to make reduced mortgage payments for a period of time while you recover from the event that caused your financial distress. Alternatives to foreclosures include:
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PortlandForeclosure.com: Portland Foreclosure. Educating the public on foreclosures in Portland and Portland foreclosure related issues. If you are a first-time home buyer, seasoned investor or home owner, you've found the right place to discover. Our online resource and help center on foreclosures is the most extensive foreclosure website in the Portland metropolitan area. We actively update foreclosure data for counties including Multnomah, Clackamas, Yamhill, Washington and Clark County. Location: 1030 NW 12TH AVE #TH4-1, Portland, OR 97209 Phone: Contact Page Email: Contact Page Copyright © 2010, Portland Foreclosure. PortlandForeclosure.com. All rights reserved. Report web site corrections and broken links only to corrections.  Privacy policy.
Disclaimer: Information provided is of public record. We do not guarantee the accuracy. In some instances, homes have been brought current, their default has been cured and they are no longer in the foreclosure process. |
AVOID FORECLOSURE: Forbearance or repayment plan Mortgage loan modification Partial claim Pre-foreclosure or short sale Deed-in-lieu of foreclosure Cash-for-keys Fannie Mae’s Deed for Lease program Making home affordable program Filing Chapter 13 Bankruptcy Filing Chapter 7 Bankruptcy |
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