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Forbearance Guide 

Struggling to Make Your Mortgage Payments? Learn How Forbearance Can Provide Temporary Relief Without Facing Foreclosure.

Homeowner reviewing forbearance documents with an expert

What Is Mortgage Loan Forbearance?

Mortgage forbearance is a temporary pause or reduction in your mortgage payments due to financial hardship. It is not forgiveness, you still owe the full amount, but you're given time to recover before repaying the missed payments.

Forbearance Pros vs. Cons

Pros:
âžœ  Avoids foreclosure.

âžœ  Protects credit score (if done proactively).

âžœ  Buys time to recover from financial hardship.

âžœ  Flexible repayment options often available.

Cons:
âžœ  Payments are not forgiven — total owed may increase.

âžœ  Interest may accrue.

âžœ  May delay future refinancing or home purchase.

âžœ  Requires communication and approval from the lender.

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How Does It Work?

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Requesting Forbearance

  • You apply with your mortgage servicer.

  • You must demonstrate a temporary financial hardship (e.g., job loss, illness, disaster).

  • The servicer evaluates your request and, if approved, grants a set forbearance term.

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Typical Terms

  • Forbearance is usually granted in 3-month, 6-month, or 12-month increments.

  • Under the CARES Act (during COVID), borrowers with federally backed loans could request up to 18 months.

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Types of Forbearance

  • Paused payments: No payment required during the term.

  • Reduced payments: Partial payments are required.

  • Interest accrual: Often continues during forbearance (except for some federal programs).

​Repayment Options After Forbearance

You must repay missed amounts, but how depends on your servicer and loan type:

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​Lump-Sum Payment

  • Pay all missed payments at once.

  • Rarely required — most lenders offer other options.

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Repayment Plan

  • Resume regular payments plus a portion of the missed amount over several months.

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Loan Modification

  • Changes loan terms (e.g., interest rate, term length) to include missed payments.

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Payment Deferral

  • Missed payments are moved to the end of the loan term — due at sale, refinance, or payoff.

Repayment agreement form for forbearance
Lender discussing the credit score impact of mortgage forbearance with a borrower

Credit Score Impact

âžœ  If granted before falling behind, forbearance does not damage credit directly.

âžœ  Missed payments before approval or failure to follow repayment terms may hurt your score.

Best Practices For Borrowers

âžœ Contact your lender early — before you miss payments.

Get terms in writing.

âžœ Ask about repayment options before accepting.

âžœ Stay in touch with your servicer — update them on your situation.

âžœ Consider credit counseling if hardship is long-term.

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