Los Angeles, CA – 03/01/2023 – As the COVID-19 pandemic continues to impact individuals and families across the country, many homeowners have turned to forbearance as a means of managing their mortgage payments during these difficult times. While forbearance can provide much-needed relief, it’s important for homeowners to understand the benefits and risks involved.

As a trusted real estate agent in the Los Angeles, CA area, I wanted to provide some insights into what forbearance is, how it can benefit homeowners, and what potential risks they should be aware of.

Forbearance is an agreement between a homeowner and their mortgage lender to temporarily suspend or reduce their monthly mortgage payments. This can be a helpful option for homeowners who have experienced financial hardship, such as job loss or illness, and are struggling to make their mortgage payments.

One of the key benefits of forbearance is that it can provide homeowners with some breathing room during a difficult financial period. Instead of facing the prospect of foreclosure or defaulting on their mortgage, homeowners can work with their lender to come up with a repayment plan that suits their needs.

However, it’s important for homeowners to understand that forbearance is not a permanent solution. While they may be able to reduce or suspend their mortgage payments for a period of time, they will eventually need to repay the missed payments, either through a lump sum payment or by adding them to their regular monthly payments. This means that homeowners who opt for forbearance will likely face higher mortgage payments in the future, which could impact their ability to manage their finances down the line.