Definition
Mortgage forbearance is a temporary agreement with your servicer to pause or reduce payments for a set period during a short-term hardship such as a job loss, illness, or disaster. It is not forgiveness: the skipped amounts still have to be repaid when the forbearance ends. Repayment options can include a lump sum, a repayment plan spread over several months, a deferral that moves the amount to the end of the loan, or a modification. The options available depend on who owns or insures your loan, such as Fannie Mae, Freddie Mac, FHA, VA, or USDA. Forbearance can buy valuable time, but it works only if the hardship truly ends. Before agreeing, ask in writing how the missed payments will be repaid and what happens if you can't resume payments, because a large balance due at the end can create a new crisis.
Real seller example
After a hurricane closed the restaurant where she worked, Tasha Green asked her servicer for forbearance and received six months of paused payments. When the restaurant reopened, she resumed her regular payment and the servicer moved the paused amount to the end of the loan as a deferral, so she didn't owe a lump sum. A coworker in the same situation took forbearance but couldn't return to work. Rather than face a large catch-up bill, he used the forbearance months to sell the house on his own timeline, paying the loan off in full at closing.
Frequently asked questions
Not always. Depending on your loan type, options may include a repayment plan, deferral, or modification. Get the terms in writing before you start.
Interest generally keeps accruing on most loans during forbearance. Ask your servicer how it applies to yours.
Yes. The paused amount is included in the payoff and paid at closing along with the balance.
Contact your servicer, explain the hardship, and ask what documentation is required. Housing counselors can help.
Reporting depends on the program and agreement. Ask the servicer how the account will be reported.
Talk to the servicer before the term ends about a modification, or consider selling while you still have equity.