Forbearance for Homeowners
Mortgage forbearance pauses or reduces your payments temporarily during hardship. Here's how it works and what happens when it ends.
In This Article
What Is Mortgage Forbearance?
Forbearance is a temporary agreement with your mortgage servicer to pause or reduce your payments during a period of financial hardship, such as job loss or a medical emergency.
Forbearance Is Not Forgiveness
The paused or reduced payments don't disappear, they're typically repaid later through a repayment plan, a lump sum, moved to the end of the loan, or addressed through a loan modification, depending on your servicer's terms.
How to Request Forbearance
Contact your loan servicer directly, explain your hardship, and ask specifically about forbearance options. Federally-backed loans often have standardized forbearance programs with defined terms.
What Happens When Forbearance Ends
You'll need a plan for the paused amount: a repayment plan (spreading the missed payments over future months), a modification (restructuring the loan), or a lump-sum payment. Understand this plan *before* entering forbearance, not after.
Does Forbearance Hurt Your Credit?
If your servicer agrees to forbearance, payments made under the agreed terms are generally not reported as late, though rules can vary, so confirm this directly with your servicer before proceeding.
Forbearance vs. Loan Modification
Forbearance is temporary and doesn't change your loan's permanent terms; a loan modification permanently restructures the loan itself. Many homeowners use forbearance as a short-term bridge and modification for a longer-term fix.
Forbearance vs. Loan Modification
Forbearance
- Duration
- Temporary, a short-term pause or reduction in payments
- Changes to loan terms
- None, the loan's permanent terms stay the same
- What happens after
- Paused amount is repaid via a plan, lump sum, or moved to the end of the loan
Loan Modification
- Duration
- Permanent, restructures the loan itself
- Changes to loan terms
- Yes, rate, term, or balance handling may change
- What happens after
- New permanent terms apply going forward
Results vary based on individual circumstances. This information is educational and not a guarantee of outcome or approval. Consult your lender, a housing counselor, or a financial professional for advice specific to your situation.
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This article was researched using publicly available information from government agencies, consumer protection organizations, and, where applicable, official lender or provider disclosures. Sources were compared for accuracy before publication and are periodically reviewed for updates. See our Research Process and Content Review Policy for details.
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