work out vs default

[thebee7777]

What is the name of your state?What is the name of your state? ohio
what is the procedure for arranging with the lender to suspend mortgage payments for 3 months or so due to hardship? Owner is one month behind on mortgage payments because of accident on job. He owns a roofing company and in falling off roof injured arm severely. has had multiple surgeries, but will be awhile before can work again. what are his alternatives to defaulting on loan, claiming bankruptcy or any other unpalatable choices. wants to pay his mortgage, just needs some recuperative time without ruining his credit.
thanks in advance! thebee7777

 

[HUD-1]

Have him contact the servicing lender. He should inquire about a 3 month forbearance plan. The lender can lower payments for the 3 months. After he is back to work, he will have to pay the full payment, plus an additional amount to repay the arrearage. The lender will need financial info from him. They might do it informally or may want a formal, written forbearance plan. This may reflect on his credit report however. Lenders normally don't approve a plan unless someone is delinquent on their loan.

 

[CoolAngel]

My husband and I had to work out a payment plan with Wells Fargo due to my husband being laid-off. We were able to skip one month's payment and stretch the payments out over 18 months. This does help but it will show on your credit as being late. I couldn't get a new car because it my mortgage showed as being 30 days deliquent and of course your mortgage has a huge impact on your credit. Obviously if it has to be done then do it. It is better than a foreclosure or bankruptcy.