Overview

What is a Forbearance?

Forbearance is an agreement between you and your mortgage company to reduce or put on hold your mortgage payments for a pre-determined period of time. This option allows you to bring your mortgage current while still having time to get back on your feet.

How Does it Work?

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.

Benefits

What are the benefits?

• Temporarily lower or suspend your monthly payment
• Less harmful to your credit than foreclosure
• Avoid foreclosure while staying in your home