Forbearance And Multi-Purpose Mortgages In Mortgage Sale And Foreclosure Proceedings

Many factors can cause a mortgagor to default on a mortgage: loss of income, marital issues, a failed or struggling business, insolvency, illness, or death, to name a few. Throw in a global pandemic on a scale not seen since the Spanish Flu of 1918 and the unfortunate reality is that we are likely to see a significant increase in the number of defaults in the coming months and years, on both residential and commercial mortgages.

In response to the current pandemic, we have already seen mortgage lenders offer six month payment deferraIs to most mortgagors, almost without question. Even as those deferral options expire, mortgage lenders may be willing to refrain, or "forbear" from enforcing their mortgage security if the mortgagor can make a reasonable proposal for alternate payment arrangements, and be willing to confirm the existence of the indebtedness and validity of the lender's security.