Reinstatement
When you are behind in your payments but can promise a lump sum to bring payments current by a specific date.
Forbearance
You are allowed to delay payments for a short period, with the understanding that another option will be used afterwards to bring the account current. Lenders sometimes combine Forbearance with Reinstatement if you know you'll have the funds to bring your account current by a specific date.
A Repayment Plan
If your account is past due, but you can now make payments, the lender may agree to let you catch up by adding a portion of the past due amount to each current monthly payment until your account is current.
If you can make your regular payment now, but cannot catch-up the past due amount, the lender may agree to modify your mortgage. One solution is to add the past due amount into your existing loan, financing it over a long term.
Modification might also be possible if you no longer have the ability to make payments at the former level. The lender might modify your mortgage to extend the length of your loan, or take other steps to reduce your payments.
The lender might be able to help you receive a one-time payment from the FHA Insurance fund. You may qualify if your loan is at least 4 months but no more than 12 months past due and you are able to begin making full mortgage payments.
The funds must eventually be repaid. You will be asked to sign a promissory note and HUD will place a lien on your property. The note is interest free, and can stay attached as a lien that becomes due when you pay off the first loan or when you sell the property.
Financial counseling designed to help you avoid foreclosure is available at VA Regional Loan Centers. Call 1-800-827-1000 and ask for the phone number of the Loan Service Representative that can assist you.
If you don't want to talk with your lender first, contact a HUD-approved counseling agency. A counselor can help you determine which options might be available to you and negotiate with your lender to work out a repayment program. Call 800-569-4287, weekdays between 9:00 am and 5:00 pm Eastern Standard Time
Forbearance means to suspend activity and give time... time to devise a workout, which in itself is a form of a workout.
A workout is a plan to avoid foreclosure and can take many forms..
Forbearance could be part of a workout, a workout could be devised during forbearance.
Check out the HUD website for their preforeclosure options and alternatives for a concise definition.
Reinstatement
When you are behind in your payments but can promise a lump sum to bring payments current by a specific date.
Forbearance
You are allowed to delay payments for a short period, with the understanding that another option will be used afterwards to bring the account current. Lenders sometimes combine Forbearance with Reinstatement if you know you'll have the funds to bring your account current by a specific date.
A Repayment Plan
If your account is past due, but you can now make payments, the lender may agree to let you catch up by adding a portion of the past due amount to each current monthly payment until your account is current.
If you can make your regular payment now, but cannot catch-up the past due amount, the lender may agree to modify your mortgage. One solution is to add the past due amount into your existing loan, financing it over a long term.
Modification might also be possible if you no longer have the ability to make payments at the former level. The lender might modify your mortgage to extend the length of your loan, or take other steps to reduce your payments.
The lender might be able to help you receive a one-time payment from the FHA Insurance fund. You may qualify if your loan is at least 4 months but no more than 12 months past due and you are able to begin making full mortgage payments.
The funds must eventually be repaid. You will be asked to sign a promissory note and HUD will place a lien on your property. The note is interest free, and can stay attached as a lien that becomes due when you pay off the first loan or when you sell the property.
Financial counseling designed to help you avoid foreclosure is available at VA Regional Loan Centers. Call 1-800-827-1000 and ask for the phone number of the Loan Service Representative that can assist you.
If you don't want to talk with your lender first, contact a HUD-approved counseling agency. A counselor can help you determine which options might be available to you and negotiate with your lender to work out a repayment program. Call 800-569-4287, weekdays between 9:00 am and 5:00 pm Eastern Standard Time