How does it work?
Forbearance suspends or reduces your mortgage payment, anywhere from 90-180 days in most cases, during the period agreed upon. If you qualify, you will sign an agreement with your mortgage company outlining the forbearance terms:
- length of forbearance
- suspended or reduced payment amount
- repayment terms
Once the forbearance period is done, it is important to know that you will be required to repay the amount which was suspended or reduced. There are a few different ways to repay this amount, ranging from lengthening the term, making a one time payment for the amount past due or adding to the existing monthly payments each month until the entire amount is repaid.