B of A Forbearance Agreement: What You Need to Know
If you`re a homeowner who has fallen behind on your mortgage payments, you may be feeling overwhelmed and unsure of what to do next. One option that may be available to you is a forbearance agreement with your mortgage servicer, such as Bank of America (B of A).
A forbearance agreement is a temporary pause on your mortgage payments. This agreement allows you to stop making payments for a set period of time, typically between three and six months. This can give you the breathing room you need to get back on your feet financially.
Here`s what you need to know about a B of A forbearance agreement:
Who is eligible for a forbearance agreement with B of A?
To be eligible for a forbearance agreement with B of A, you must have experienced a financial hardship, such as a job loss, medical emergency, or natural disaster. You must also be able to show that you can`t afford your mortgage payments as they currently stand.
What happens during a forbearance agreement?
During a forbearance agreement, you won`t have to make your regular mortgage payments. However, interest will continue to accrue on your loan, and your monthly payments may increase once the forbearance period ends. You`ll need to work with B of A to come up with a repayment plan to make up the missed payments.
How do you apply for a forbearance agreement with B of A?
To apply for a forbearance agreement with B of A, you`ll need to contact them directly. You can call their customer service line or submit an application online. You`ll need to provide documentation of your financial hardship, such as proof of job loss or medical bills.
What are the potential drawbacks of a forbearance agreement?
While a forbearance agreement can give you temporary relief from your mortgage payments, it`s important to understand that it`s not a permanent solution. You`ll still need to make up the missed payments at some point, and that can be a challenge if you`re facing ongoing financial difficulties. Additionally, interest will continue to accrue on your loan during the forbearance period, which means you`ll end up paying more in the long run.
Overall, a forbearance agreement with B of A can be a helpful tool to get through a temporary financial hardship. If you`re struggling to make your mortgage payments, it`s worth considering. However, it`s important to weigh the potential drawbacks and make sure you have a plan in place to make up the missed payments once the forbearance period ends.