Question

Do mortgage forbearance and a foreclosure moratorium accomplish the same thing and what is the difference between the two?

Answer 1

The mortgage forbearance means the lender allows to suspend the mortgage payments for a reasonable period .The act provides the right to stop the payments completely for specified period of time.Mortgage forbearance does not allow to clear the payments but it will be payable after some period of time.Under this method we got some time to repay the money only. There are different type of repayment programmes. On the basis of this programmes you should get the payment method.

The foreclosure moratorium means the lender take back your property which one you provided as security for loan, because of the default happend in the repayment. The foreclosure will be different under each state. The lender get the power to take ownership of mortgage property and also the power to sell the property. Foreclosure happens not only the default in repayment but also any fault in terms and conditions of mortgage document.Normally lenders avoids the foreclosure and try to get the payments periodically.It also a legal process on the basis of Mortgage contract which allows the lender to take the right to use the property when the payment fails.