Fannie Mae and Freddie Mac’s recent extension of forbearance programs will give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions. In a forbearance program, a lender agrees not to foreclose on a property and gives a borrower several months’ grace from or reduction in monthly mortgage payments. The programs work best for temporary setbacks, like job loss, health problems or natural disasters. Click to read more
These have been tough years for the Cohen family. Suffice to say that fiscal Armageddon hit after they had lived in their Yorba Linda home for 18 years.
They fell behind on the house payments.
There were many conversations with the lender, Bank of America. And last spring, when the bank’s patience was running low and the family’s fiscal fortunes hadn’t changed, the Cohens put the home where they raised their two daughters up for sale, hoping to head off foreclosure.