What Is Mortgage Forbearance All About?

Here’s what you need to know about how mortgage forbearance works.

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If you’re struggling to make your house payment, know that there are plenty of solutions available to you.

The CARES Act passed last spring allowed you to go into mortgage forbearance if you were struggling to make ends meet. It gave homeowners the opportunity to reach out to their mortgage provider and put off some of those payments. These payments aren't forgiven or absolved, they’re just delayed.

There are no documents required to go into forbearance; all you have to do is contact your service provider. However, these missed payments will have to be repaid somehow. Although missed payments do have to be repaid, they won’t count against your credit if you applied for forbearance. 

 

If you were behind on your payments prior to your requested forbearance, they have to show you as being delinquent. Both of these things will impact your credit score. Forbearance will ding your credit slightly, but it’s better than showing late or missed payments.

All you have to do to enter forbearance is contact your service provider.

FHA, VA, and conventional loans all have their own programs. The FHA, for example, lets you set up a junior lien in your mortgage and pay that amount separately as a different loan. There is definitely some flexibility out there.

If you need more information, you can go online and search “mortgage forbearance” and one of the first results will be HUD’s forbearance tool that should help you. We also have that tool and would be happy to send it to you. Ultimately, it starts with reaching out to your mortgage provider and asking them about forbearance.

If you’re behind on your payments and at risk of going into foreclosure, we can help you defend your equity and ensure that you either get caught up or get your home sold before it’s foreclosed. Reach out to us today and let’s discuss your situation.

If you have any questions for me about forbearance or real estate in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.