Forbearance
Forbearance is a temporary agreement between a borrower and their mortgage servicer to reduce or pause monthly mortgage payments during a period of financial hardship.
Forbearance does not eliminate the debt — it defers it. Once the forbearance period ends, the borrower must repay the missed amounts through a repayment plan, loan modification, or lump-sum payment, depending on the servicer's options.
Forbearance is not forgiveness. The payments are delayed, not canceled. Additionally, entering forbearance can affect your ability to refinance or purchase a new home for a period of time afterward.
Why This Matters: If you are facing financial difficulty, forbearance can provide temporary relief — but understanding the terms before you agree is critical. Know what happens when the forbearance ends so you can plan accordingly.
Common question
Does forbearance forgive my mortgage payments?
No. Forbearance defers payments; it does not cancel them. You will need to repay the missed amounts through a repayment plan, modification, or lump sum when the forbearance ends.
Will forbearance affect my ability to refinance or buy later?
Yes. Entering forbearance can affect your ability to refinance or purchase for a period afterward. Understand the long-term impact before agreeing to forbearance.
Related Topics
Related Mortgage Terms
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