If you’ve ever hit a financial rough patch—job loss, medical bills, unexpected expenses—you know how fast things can spiral when a mortgage payment is added to the mix. That’s where mortgage forbearance comes in. It’s basically a temporary pause or reduction in your mortgage payments so you can catch your breath without risking your home.
Forbearance isn’t mortgage forgiveness (you’ll still owe the missed payments later), but it is a really helpful safety net for homeowners who need short-term relief. Here’s everything you need to know to decide whether it’s the right move for you.
How Mortgage Forbearance Works
The Basics of Forbearance
Mortgage forbearance gives you a break from making full monthly payments for a set period—typically anywhere from 3 to 12 months. Your lender or loan servicer approves the pause based on your temporary hardship.
It’s different from:
- Deferment: pushing missed payments to the end of the loan
- Loan modification: permanently changing loan terms
- Forgiveness: wiping out debt (forbearance does not do this)
What Happens to Missed Payments?
This is the big question homeowners have. When your forbearance ends, you’ll work with your lender to choose a repayment option. Common choices include:
- Deferral: missed payments get tacked onto the end of the loan
- Repayment plan: you pay a bit extra each month
- Modification: your loan terms adjust
- Lump sum: usually not required right away
Most lenders do not expect one big lump-sum check the day forbearance ends.
Why Homeowners Request Forbearance
Common Situations
Life throws curveballs. Homeowners often request forbearance because of:
- Job loss or reduced hours
- Medical emergencies
- Natural disasters
- Temporary financial hardship
- Family caregiving needs
When Forbearance Makes Sense
Forbearance is best when your financial situation is temporary. If your income will bounce back soon, it’s a great tool to avoid falling behind or facing foreclosure.
How to Apply for Mortgage Forbearance
Steps to Request Forbearance
Getting started is pretty simple:
- Contact your lender or loan servicer ASAP.
- Explain your hardship (job loss, illness, etc.).
- Provide any documents they request.
- Review your forbearance options and timeline.
What Lenders Look For
Your approval often depends on:
- The type of loan (conventional, FHA, VA, USDA)
- Hardship details
- Whether your loan is current
Possible Documentation
You may be asked for:
- Proof of income changes
- Bank statements
- Hardship letter
- Unemployment verification
Some loans—especially FHA and VA—have streamlined options that require minimal documentation.
Pros and Cons of Mortgage Forbearance
Benefits
- Gives you immediate payment relief
- Helps avoid late payments and foreclosure
- Buys time to recover from financial hardship
- Doesn’t require a permanent change to your mortgage
Drawbacks
- Payments aren’t forgiven—you still owe them
- Future payments might increase depending on repayment plan
- Could affect your ability to refinance or buy later
- Escrow shortages can happen if taxes/insurance aren’t fully funded
How Forbearance Affects Your Mortgage Long-Term
Impact on Credit Score
If you enter forbearance through an approved program, many servicers report your account as “current.” However, missing payments without notifying your lender can hurt your credit. Always communicate early.
Refinancing or Future Home Buying
Most lenders have waiting periods after forbearance. For example:
- Conventional loans: typically require 3–12 months of on-time payments after exiting forbearance
- FHA/VA loans: often have more flexible rules
Interest, Escrow, and Loan Balance
Interest generally continues accruing during forbearance, and your escrow account may be short afterward—meaning your monthly payment could bump up slightly.
Alternatives to Mortgage Forbearance
Relief Options to Consider
If forbearance doesn’t feel like the right fit, you might explore:
- Loan modification (permanent payment changes)
- Payment deferral
- Refinancing
- Partial claim (FHA)
- Selling the home (only if absolutely necessary)
When You Might Choose an Alternative
If your financial situation isn’t short-term, or you need a lasting reduction in your monthly payment, a modification or refinance may make more sense.
How to Exit Mortgage Forbearance Successfully
Communicate Early
Talk to your servicer 30–60 days before the forbearance period ends. That way, you won’t feel rushed into repayment decisions.
Choose the Right Repayment Option
Ask your lender about:
- Deferral
- Repayment plans
- Loan modifications
- Whether your monthly payment will change
Choose the path that fits your current budget and financial goals.
Budgeting Tips After Forbearance
- Build a small emergency fund
- Prepare for possible escrow adjustments
- Track your monthly expenses as things normalize
FAQs About Mortgage Forbearance
Is forbearance just skipping payments?
Not quite. You’re pausing payments with your lender’s approval, and you’ll repay them later.
Will forbearance hurt my credit?
If it’s an approved plan and you were current going in, many servicers won’t report missed payments. But always confirm with your lender.
Can I sell my home during forbearance?
Yes—you’ll just settle the mortgage balance at closing, including any deferred payments.
Do I need forbearance if my hardship is long-term?
Probably not. A loan modification or refinance may be better.
What if I can’t resume payments when forbearance ends?
Contact your lender immediately—they may extend the period or offer a modification.
Final Thoughts
Mortgage forbearance can be a lifesaver when money gets tight—but it’s important to fully understand how it works. The key is communication: talk to your lender early, understand your repayment options, and choose the plan that protects both your home and your long-term financial health.
You don’t have to navigate mortgage hardship alone. Connect with a mortgage professional who can guide you through your best relief options.
