The purpose of mortgage deferment or forbearance programs is to help homeowners avoid foreclosure. Generally, these programs are open to homeowners that have fallen on hard times, lost their job or other similar circumstances. These programs seek to reduce or defer mortgage loan payments so that borrowers can afford to stay in their homes. Usually, these programs only provide decreased payments for a short amount of time.
Mortgage Bankers Association
The Mortgage Bankers Association has created a program geared for people who have lost their jobs. With this program, mortgage lenders will reduce the borrowers' payments so that they will be better able to afford their mortgage payments. Mortgage lenders base these lowered payments on the borrowers' income, and the lowered payments last for up to nine months. Every three months the mortgage lenders reevaluate the borrowers' income and employment status.
Mortgage Bankers Association 1717 Rhode Island Ave. N.W. Suite 400 Washington, DC 20036 202-557-2700 mortgagebankers.org
Bank of America
Bank of America offers its customers a forbearance program that reduces or defers payments for people who are going through some type of financial hardship. Bank of America usually suspends payments for only 90 days. To be eligible, borrowers must be going through a temporary financial hardship, such as job loss, medical bills or natural disasters, and they must not have missed any payments before the financial hardship. Borrowers who qualify for the mortgage deferment must pay the deferred payments once they are back on their feet, and these payments will include all accumulated interest, insurance and taxes.
Bank of America Corporate Center 100 N. Tryon St. Charlotte, NC 28255 800-900-9000 bankofamerica.com
Chase Mortgage Default Recovery Program
This program defers payments for current borrowers, and Chase bases the payment terms upon the borrowers' current income and financial hardship. To be eligible, borrowers must provide documents that confirm their financial problems and their current income status. The program either allows borrowers to pay a lowered amount for a limited amount of time, or to defer payments for up to 90 days. Borrowers may be required to pay past interest, insurance and taxes.
Chase National Bank Mail Code KY1-0900 6714 Grade Lane Building 8, Suite 807 Louisville, KY 40213 800-848-9136 jpmorgan.com
Misty Faucheux became a freelance writer in 1998 and has been an editor since 2004. She has written for a variety of websites and blogs, specializing in topics ranging from digital photography to computer systems to digital media. Faucheux received a Bachelor of Arts in communications from Loyola University New Orleans.