Can I Get a Forbearance Agreement to Stop Eviction?
Full Question:
Answer:
Forbearance is when a lender agrees to let you delay your payments to them for a short period of time. That doesn't mean the lender has forgiven the debt but just allows you to pay what you owe at a later date. A forbearance mortgage is when your lender agrees to let you delay your monthly mortgage payments for a short period of time. A forbearance mortgage is often combined with other programs that bring your monthly mortgage payments current after a negotiated period of time.
If the lender believes the repayment terms can be restructured to its satisfaction, then the forbearance agreement is an effective compromise. Forbearance is usually for temporary financial problems. If the borrower has more serious problems, for example if it is a variable-rate mortgage and the interest rate becomes unaffordable for the borrower, then forbearance is usually not a solution.
Once any petition for bankruptcy is filed, the bankruptcy laws provide for an automatic stay which is an injunction against the continuance of any action by any creditor against the debtor or the debtor's property. This means that creditors are no longer entitled to file liens on property for debts that existed at the beginning of the bankruptcy case. The only exception may be for on-going child or family support ordered by a court. The automatic stay prohibits the beginning or continuing of law suits, any collection calls, repossessions, foreclosure sales, and garnishment or levies.
