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Loan Modification | The Homesfinder Realty Group 208 Carteret St Beaufort, SC 29902 Blog

Wednesday, June 3, 2020   /   by Sonya Reiselt

What is the Difference Between Forbearance and Loan Modification?

"Forbearance" is a new term many homeowners in Beaufort County have learned this year. Many homeowners have encountered difficulty paying their mortgages and are looking for ways to save their homes. Unemployment benefits are just not enough for most people to cover their mortgage payments.
What, exactly, is forbearance? Simply put, it means putting your mortgage payments on hold for a period of time. Of course, you would want to work with your lender to create a forbearance agreement. You would never want to just stop making payments without doing so, as that could trigger a foreclosure.
To be honest, most lenders would rather not foreclose on a home. It's not financially beneficial for a lender, as they get stuck owning the home. They then have to go through the lengthy and costly process of selling the home at an auction. It makes much more sense for lenders to work out an arrangement with the homeowner, and forbearance is one of those arrangements.
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