In real estate terms, a “forbearance by special request” is when a borrower requests that a mortgage lender postpone the filing of a foreclosure. Rather than go through with a foreclosure, the lender may grant the person some time to gather more financial resources in order to pay back the missed payments.
Forbearance is not typically granted automatically as an option, which is why it must be asked for by “special request.” Not all mortgage or real estate loan agencies will comply with a request for a forbearance. The borrower must usually meet various requirements, such as:
- A relatively good history of making payments in the past
- Proof that they are going through unusual circumstances or hardships
- Evidence that they will likely be able to make the back payments in the given time
Forbearances by special request are usually granted in cases where the amount missing is not a lot. Depending on the amount in question, different types of forbearances can be granted. They include:
- Full repayment of all missing amounts
- Reduced payment plans (this may or may not include interest, depending on the lender’s decision)
- Repayment of only the interest amounts
Thus, a forbearance by special request will vary greatly from case to case. The exact details of the forbearance may depend on the borrower’s needs and capabilities, as well as the lender’s policies and willingness to work with the borrower.
Usually, the main goal of requesting a forbearance is to delay or avoid foreclosure. If a forbearance by special request is not available, there might be some other options for the borrower. For instance, they might be able to negotiate for a mortgage modification or an adjustment in their overall loan terms. Alternatively, they might be able to secure a second mortgage or obtain refinancing. The availability of these options all depends on the individual circumstances surrounding each case.
Lastly, a foreclosure can also be postponed or delayed due to other occurrences. For instance, if the borrower files for bankruptcy, or is involved in a lawsuit, these can put a hold or “stay” on existing foreclosure processes. The borrower can also inquire with their real estate agent or with an attorney for other foreclosure alternatives.
Obtaining a forbearance by special request often requires special knowledge of real estate and loan laws. It can also involve many discussions and negotiations between borrower and lender. You may need to hire a foreclosure lawyer in your area if you need help with requesting or obtaining a forbearance. Your attorney can assist you during negotiations with your lender. Also, if you need to attend any court sessions or file any legal claims, your lawyer can represent you in court as well.