Forbearance
Forbearance is a temporary agreement between you and your mortgage servicer to pause or reduce your mortgage payments during a financial hardship. Forbearance is not forgiveness — missed payments must be repaid, either in a lump sum, through a repayment plan, or via loan modification. It protects your credit from foreclosure while you get back on your feet.
During the COVID-19 pandemic, millions of Americans entered mortgage forbearance under the CARES Act, which allowed up to 18 months of payment suspension without credit penalty. Outside of federal programs, standard forbearance periods are typically 3–6 months and require you to work with your servicer.
There are different repayment options after forbearance ends. A reinstatement requires you to pay everything owed at once — the most difficult option. A repayment plan spreads the owed amount over several months by temporarily increasing your regular payment. A deferral moves the missed payments to the end of the loan as a non-interest-bearing balance. A loan modification permanently changes your loan terms to make payments more affordable.
Important: simply stopping payments without contacting your servicer is not forbearance — it's default. You must proactively request forbearance and get written confirmation of the terms. Contact your servicer at the first sign of financial hardship; options are most available before you fall behind.
Key Takeaway
Forbearance is a temporary agreement between you and your mortgage servicer to pause or reduce your mortgage payments during a financial hardship. Forbearance is not forgiveness — missed payments must be repaid, either in a lump sum, through a repayment plan, or via loan modification. It protects your credit from foreclosure while you get back on your feet.
Related Terms
Frequently Asked Questions
If properly arranged with your servicer, forbearance should not result in negative credit reporting. Skipping payments without an agreement will damage your credit.
Yes. Forbearance is not forgiveness. You'll need to repay the paused amounts through a reinstatement, repayment plan, deferral, or loan modification.
Contact your mortgage servicer by phone or through their website. Explain your hardship, ask about available programs, and get any agreement in writing.
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