What are the potential risks or drawbacks of a mortgage forbearance in Ohio?

Mortgage forbearance can be a useful tool for homeowners who are struggling to make their monthly mortgage payments due to a financial hardship, such as a job loss or medical emergency. Under a forbearance agreement, your lender agrees to temporarily reduce or suspend your mortgage payments for a specific period of time. This can provide some much-needed breathing room for homeowners who are facing temporary financial difficulties.

However, it's important to understand that mortgage forbearance is not a permanent solution, and there are potential risks and drawbacks to consider before entering into a forbearance agreement. Some of these potential risks or drawbacks include:

Missed payments will still be due: While a forbearance agreement allows you to temporarily stop making mortgage payments, it does not erase your missed payments. You will still be responsible for paying back the full amount of your missed payments, either through a lump sum payment or a repayment plan.

Interest will continue to accrue: Even if you're not making mortgage payments during a forbearance period, interest will continue to accrue on your loan. This means that you'll end up paying more in the long run, even if you're able to get some temporary relief from your monthly mortgage payments.

Your credit score may be affected: Missed mortgage payments can have a negative impact on your credit score. If you enter into a forbearance agreement, it's important to be mindful of this potential drawback and try to minimize the impact on your credit as much as possible.

Your lender may modify or revoke your forbearance agreement: While a forbearance agreement is meant to provide temporary relief, your lender has the right to modify or revoke the agreement if your circumstances change. For example, if you get a new job or receive a windfall that would allow you to start making your full mortgage payments again, your lender might decide to end your forbearance agreement and require you to resume paying your mortgage as originally agreed.

If you're considering a mortgage forbearance in Ohio and have questions about the potential risks or drawbacks, it's a good idea to seek the advice of a qualified attorney. The law firm of Doucet Co., LPA has extensive experience helping homeowners navigate the complex world of mortgage forbearance and other options for dealing with financial hardships. If you need guidance, don't hesitate to call us at (888) 200-9824.