A forbearance agreement is a plan agreed to by a lender and a borrower, in which the lender agrees not to take legal action against the borrower, such as home foreclosure, for a temporary time period. A forbearance agreement may be a viable option for a borrower who is experiencing temporary financial problems. However, the solution will only work temporarily if the borrower is unable to get back on track and make regular debt payments.
If you have questions about forbearance agreements and other debt relief matters, the attorneys at the Arizona Law Group of Trezza & Associates, LLC, are here to answer them. Our attorneys have extensive experience handling Chapter 7 and Chapter 13 bankruptcies for clients from Phoenix, Tucson and throughout Arizona.
To discuss your specific circumstances with Arizona bankruptcy attorney Stephen Trezza, contact us to schedule a consultation.
Foreclosure Forbearance Agreements
If you are behind on your mortgage payment due to a temporary hardship, such as a health problem or job loss, your lender may be willing to offer you a forbearance agreement. The agreement may reduce or suspend your monthly payment obligation for a few months or as much as a year, but eventually, you will have to get up to date and pay back any missed payments.
Lasting Debt Relief Through Bankruptcy
If your situation is not temporary, filing for bankruptcy can offer you lasting debt relief solutions. Filing for Chapter 13 bankruptcy can stop foreclosure while giving you time to get up to date on your mortgage payments. Under certain circumstances, filing for bankruptcy can also strip second mortgages. While a forbearance agreement offers temporary debt relief, filing for Chapter 13 bankruptcy offers a permanent solution, as long as you can make monthly debt payments over a three- or five-year time period.
Contact Us to Learn More About Forbearance Agreements in Arizona
Every case is different, so it is important to discuss your situation with a Phoenix bankruptcy lawyer before making a decision. Contact us to discuss your options. We represent clients from Phoenix, Tucson and throughout Arizona.
