Foreclosure Forbearance

Forbearance is where the lender works with the homeowner to modify the existing loan and avoid foreclosure. (e.g., the lender might put the arrears at the back end of the mortgage, creating a longer time period in which to pay off the mortgage). Or the lender may allow the owner to pay a certain amount extra each month to make up the back payments. Sometimes they will put the back payments along with late penalty fees into a new loan