Forbearance temporarily reduces or suspends your mortgage payments during a hardship. Learn how to apply, what repayment options exist, and how forbearance fits into your foreclosure defense strategy.
Mortgage forbearance is a temporary agreement with your loan servicer to reduce or suspend your monthly mortgage payments for a specific period due to financial hardship. Unlike a loan modification (which permanently changes your loan), forbearance provides short-term breathing room. At the end of the forbearance period, you must repay the missed amounts through one of several repayment options.
During the COVID-19 pandemic, the CARES Act provided federally backed mortgage holders with the right to up to 18 months of forbearance. While most CARES Act programs have wound down, many servicers continue to offer forbearance options for hardship situations. The CFPB has issued guidance encouraging servicers to work with borrowers facing ongoing difficulties.
Pay all missed payments at once when forbearance ends. Least common — most borrowers who needed forbearance cannot afford a large lump sum.
Spread the missed payments over 3-12 months by adding a portion to each future payment. Example: $6,000 in missed payments over 12 months = $500/month added to normal payment.
Move the missed payments to the end of the loan as a non-interest-bearing balance due upon sale or refinance. FHA offers a partial claim option. This preserves your current payment amount.
Roll the missed payments into a permanent modification with lowered payments, extended term, or reduced rate. The most comprehensive exit from forbearance.
Forbearance can be a critical component of a foreclosure defense strategy. It buys you time — time to find new employment, recover from illness, apply for a permanent modification, or pursue legal remedies. While under a forbearance agreement, the servicer typically agrees not to proceed with foreclosure. However, forbearance alone is temporary — you must have a plan for what comes next.
Our team will assess your situation and help you navigate the best path forward — whether forbearance, modification, or legal defense.
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