Forbearance temporarily pauses or reduces your mortgage payments during a financial hardship — but it is not forgiveness. Here is what you need to know.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Mortgage Options Network is operated by Pipeline Harbor Digital LLC. We connect homeowners with experienced mortgage relief professionals who can help evaluate their options.
Mortgage forbearance is a temporary agreement between you and your mortgage servicer to pause or reduce your monthly mortgage payments for a defined period. It is important to understand from the outset: forbearance is not forgiveness. The payments you do not make during a forbearance period are still owed. They are simply paused, not eliminated.
Forbearance is designed as a short-term solution for homeowners facing a temporary financial hardship — a period of time when your income has dropped or you have experienced unexpected expenses that make your normal mortgage payment temporarily unaffordable. The expectation is that your financial situation will stabilize and you will be able to resume payments and address the missed amounts.
When you request forbearance and your servicer agrees, you enter into a forbearance plan that specifies the duration (typically 3 to 12 months, sometimes longer) and the terms — whether payments are fully paused or reduced to a lower amount. During the forbearance period, your servicer generally cannot initiate or continue foreclosure proceedings against you.
During forbearance, interest typically continues to accrue on your outstanding loan balance. Late fees are generally waived or suspended during an approved forbearance period, but this varies by servicer and loan type. Your servicer is required to report to credit bureaus that your account is in a forbearance plan, which may reduce the negative credit impact compared to simply missing payments.
The CARES Act, passed in March 2020, created significant forbearance protections for homeowners with federally backed mortgages (FHA, VA, USDA, Fannie Mae, and Freddie Mac loans). Eligible homeowners could request up to 18 months of forbearance simply by attesting to a COVID-related financial hardship. At its peak, over 4 million households were in forbearance simultaneously. These CARES Act provisions have since expired, but they established important precedents and many servicers maintain similar hardship forbearance programs.
This is the most important thing to understand about forbearance. When the forbearance period ends, the paused payments become due. How they are handled depends on the repayment option you and your servicer agree to:
Contact your mortgage servicer as soon as you experience or anticipate a financial hardship. You do not need to wait until you miss a payment — proactive requests are accepted. Explain your hardship and ask specifically about forbearance options. Get any agreement in writing before you stop making payments. Ask specifically about the repayment options available when the forbearance period ends so you fully understand your obligations.
Submit your information and independent professionals may reach out to discuss your options.
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