Forbearance- What it is and Should you Consider It
Forbearance is when a lender agrees to let a borrower postpone payments until a later date. The payments are not eliminated. They will need to be paid at the end of the forbearance period, spread over time, or added at the end of the loan. It’s important to know this is not for everyone but only those who have lost a job or have a financial hardship due to the coronavirus pandemic.
Potential BenefitsIf you are eligible and in true need, this can be a big, albeit temporary help with cash flow.
Potential ProblemsIf you’re without funds for monthly payments now, what is the likelihood of being able to make up missed payments all at once in a few months? This is the worst-case scenario, but…
