- Lowers your monthly payments and keeps you in your home
- Prevents or delays foreclosure
- Is not a new loan (like refinancing). Modifies your existing loan.
- Not as damaging to your credit as foreclosing
- Not all lenders offer loan modification
- Modify your interest rate and increase loan term
What is mortgage forbearance?
Forbearance is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. You will have to pay the payment reduction or the paused payments back later.