Why is my bank asking me to sign a Forbearance agreement?

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I applied for a loan modification to hopefully lower my mortgage payments. My bank called and said it looks like i will qualify, but because my loan is owned by a private invester (not fannie mae or freddie mac) I need to be deliquent by 90 days. Therefore, they have asked I make a small amount of payment of my monthly payment each month for 3mnths ( in other words, not the full amount) and sign the forbearance agreeement. Then to get back to them in 3mnths to see what type of loan modification I will get? does this make sense? and what is the forbearance agreement? Thanks
I am not behind on my loan, just struggling on my payments, but havent been behind or late

1 Comment
  1. Reply
    February 14, 2011 at 5:36 pm

    Yes, this make sense, they are adding what you are behind to the end of your loan and not requiring you to be current before they modify the loan.

    This is good for you.

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