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Q. Wells Fargo, my lender, is offering me a modification forbearance agreement, and my monthly payment are $2 less per month, for a three-month trial. What is a modification forbearance agreement?
— Confused
A. It seems you’re getting mixed up in the terminology.
Modifications and forbearance agreements are programs developed by lenders to address homeowners who are having trouble paying their mortgages.
‘‘Forbearance agreements typically reduce or delay mortgage payments for a specified period of time,’’ said James Marchesi, a certified financial planner with Mill Ridge Wealth Management in Chester. ‘‘This option is mainly considered by cash-flow challenged homeowners in order to avoid foreclosure or bankruptcy.’’
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