See: Mortgage.
You’ve fallen behind on your mortgage. Your Irish dance troop hasn't gotten much work lately, and you just can't make your bills. Technically, you’re in default, which means the lender has the right to foreclose on your home.
However, a foreclosure isn't something either you or your lender really wants. For you, it means you'll have to find a new place to live (and who'd want to rent an apartment to an out-of-work Irish dancer, who will be loudly practicing all the time?). For the lender, they have to go through all the trouble and expense of foreclosing on the house and then selling it. Not to mention that they'd make more money from you paying off your mortgage than they would from selling the house (they don't earn any interest from the sale).
Time for a forbearance agreement. It's a deal you can strike when you're behind on your mortgage that halts the foreclosure process. The lender agrees not to exercise their right to launch a foreclose proceeding on the mortgage. Meanwhile, you as the homeowner set up a payment plan (or other similar arrangement) that enables you to get up-to-date with your payments.
It's like taking a time-out from the nasty legal proceedings, giving you a chance to figure out your finances (and maybe get a new profession).
Related or Semi-related Video
Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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