What's a Forbearance Agreement? Among the many possible options available to a homeowner in foreclosure is a Forbearance Agreement. That's an agreement by a lender to stop the foreclosure proceeds in exchange for the borrower's promise to catch-up payments. The borrower will need to make larger than usual payments until any payments in arrearage are caught up. The monthly payments could be 1.5 to 2 times as large as the normal payments, depending on the borrowers financial ability.

From what I've been told by a few lenders, they're swamped with defaulted mortgages and advise patience when calling about workout solutions.

What happens to your credit after foreclosure?

Here's what one credit union says: "If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will...

Not all predatory practices occur during loan origination: several subprime servicers have entered settlement agreements with regulators for predatory servicing practices, including...

Foreclosed homeowners need to be wary of scammers. Here is a story from Sacramento that highlights this point.

A man who told people facing foreclosure that he could help them was sentenced Thursday to five years in federal prison for bilking the homeowners and defrauding a lender.

Federal Reserve Chairman Ben Bernanke testified before the House Committee on Financial Services. He said that “foreclosures will get worse before they get better.”

Iowa's relatively tough foreclosure laws stem from scenes such as these during the Great Depression.

(Photo courtesy of the National Archives and Records Administration.)