Forbearance

Forbearance refers to the act of refraining from beginning foreclosure action. Let's say you stop paying on the loan. Once you are late 30 days or more the lender calls the loan delinquent. Most lenders wait until you are 60 days late before they do anything. However at any time after you are 60 days late, they can begin foreclosure action.

At its discretion, the lender can decide not to begin the foreclosure process. The loan loss mitigation department of the lender is allowed to use this technique in order to help out a troubled borrower.

When you realize that you are going to start falling behind on your payment, you should make an effort to speak with the lender's loan loss mitigation department. If you encounter circumstances which merit this, such as a temporary job loss, or some short term disability, they may very well offer allow you to not make a payment for a certain amount of time. Until you ask, you won't know.

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