Advice on Forebearance-Please!

[serenityseeker]

What is the name of your state? Oregon

Husband and I entered into forebearance agreement 2 days ago after a couple of anxious weeks when we couldn't get a straight figure of what we owed to the Mort. Co. in arrears. Sent money and all paperwork back to Mort. Co but feeling extremely uneasy about it all. Forebearance papers say something to the effect of payment in the amount of approx $4400 by March 25th, and then further down states the $2600 we already sent plus the payment schedule. We can pay the higher amount, so would it be better to do that then the partial payment we already paid, and therefore avoid the higher monthly payments and the anxiety of knowing that they could change their minds at any time in the next 6 months? We have some equity in the house and I'm thinking they'd rather take it then keep us in the house. I'm feeling like we are not protecting ourselves at all and that the BEST option would be to pay the arrears of approx $4400 and start with our normal payment in april. If so, will they accept this arrears payment or will they cancel the whole deal? I'm nervous!

Need advice asap-have less than a week. Thanks in advance!

 

[serenityseeker]

Was hoping that someone would reply to my post by now. Does anyone know how safe a forebearance agreement is? Is it risky or not? Is it significantly better to pay up the total arrears even though it will cause us to be late on all our other bills and be a $ crunch for the next mortgage payment?!

Would greatly appreciate someone taking the time to answer!

 

[HUD-1]

I think it is a question only you can answer. A written forbearance is "safe" enough, as long as you don't break the agreement. It means six months of belt tightening. Your car needs new tires, a brake job or your OT hours are cut back over the next six months and you have a problem. Break the forbearance and you are back in foreclosure including the legal fees that go with it. I don't know the nature or the consequences of not paying the other bills, but I think most counseling agencies will tell you to pay the mortgage and deal with the bill collectors. The bill collectors cannot foreclose on your home. For the name and number of a local, HUD approved, non-profit housing counselor, you can call 800-569-4287.

 

[serenityseeker]

Thanks for the reply HUD-1! I just wasn't sure if the forebearance was some kind of a way to still foreclose, without actually doing it immediately. Hope that makes sense! Thanks again!