Forbearance Agreement
I am supposed to meet with a homeowner that is in the pre-foreclosure state (e.g. lis pendens filed) - she just wants move money and there is equity in the house. She made a point of telling me that she signed a forbearance agreement with the lender. While I think I understand what a forbearance agreement does (stop the action); what impact does it have? I plan to have her sign a quit claim & pay a little move money (make up back pmts) - after some due diligence of course - but am not famaliar with a forebearnce agreement. Help?
A forbearance agreement typically involves them rolling the back payments and fees into the loan and setting them up on a payment plan that will catch them up in set amount of time, usually the monthly payment goes up about 35% or so in my experience with them