What is forbearance?
Forbearance is an agreement between a bank or lender and a homeowner to reduce or pause payments for a period of time in order to allow the homeowner to catch up on missed payments. This can be a very stressful situation and in many cases is caused by unforeseen circumstances such as a serious injury, death in the family, or sudden job loss. Following the COVID-19 Pandemic, many people found themselves in this predicament. Here’s everything you need to know about forbearance and how to handle the process.
Can I sell my home while in forbearance?
Many people wrongly assume that if they’re in a forbearance agreement that they are not able to sell the home. However, this is one of the most common solutions to help you get out of the hole especially if you feel like you won’t have enough time to catch up or get ahead of your payments.
Do I have to payback my full forbearance amount?
The answer in most cases is yes so the most important thing to consider is whether or not your home is worth more than you owe. If so, then the process will be a lot simpler because you’ll be able use the profit from the sale to payback your lender in full. If there’s anything left over that will go into your pocket. If you owe more than the home is worth however, you’ll want to speak to your lender first to see if they’ll give you approval to sell for less.
How to sell my home in forbearance?
If you do decide to move forward with selling your home, you’ll most likely want to do so in the quickest way possible before the agreement ends and payments resume. Instead of reaching out to a realtor you’ll want to find someone who is willing to pay cash and close on your schedule because realtors will only make your situation worse considering you’ll likely have to give up a percentage of the sale to cover commissions and this process tends to drag out looking for the right buyer to come along.
Who will buy my home fast?
If you find yourself in this situation and are looking to sell your home on Long Island, call the experienced Noah Development Venture team at 631.750.2837 to setup a no obligation consultation today!