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Foreclosure vs Forebearance

Updated: Jan 15, 2023

The first step of the foreclosure process is foreclosure which means that your loan is in default.

The loan is in default after 120 days of being late and this will go on your credit report as a NOD which means Notice of default.

After a loan goes into foreclosure then a lender has a variety of programs that they can offer a

Homeowner. The lender will offer a Loan Modification, In-house Repayment plan, Forebearance plan, short sale, or deed-in-lieu.

A forbearance program is when the lender takes all of the late payment and tag them on to the end of the loan and give the homeowner a period of non-payment for 3 months,6 months or 1 year with no payments.

After the forbearance plan has ended then The lender can offer a forbearance loan modification for a trial payment over 3 months.

You as the homeowner has to make 3 payments on time to qualify for a loan modification.

If you fail these programs and are losing your home feel free to contact us at the Second

Chance Program and fill out Our Question to get Preapproved.

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