Mortgage Forbearance: What You Need to Know
Understanding Mortgage Relief Options
If you’re struggling to make your mortgage payments due to financial hardship, mortgage forbearance may provide temporary relief. However, it’s essential to understand how forbearance works and what repayment options are available.
What to Do First If You’re Facing Financial Hardship
✅ If You Can Pay Your Mortgage, Keep Paying
If you’re still able to make your mortgage payments, continue doing so. Mortgage servicers are prioritizing homeowners who are facing immediate financial distress.
✅ If You Can’t Pay or Can Only Make Partial Payments
Contact your mortgage loan servicer as soon as possible. Be prepared for longer wait times due to high call volumes, but check their website for guidance before calling.
What Is Mortgage Forbearance?
Forbearance allows you to pause or reduce your mortgage payments for a limited time. This can help you stay in your home while managing financial difficulties. However, it’s important to note:
- Forbearance does not erase or forgive your mortgage payments. You will still need to pay back the missed amount later.
- Repayment terms vary based on your loan type.
How Will You Repay Forbearance?
Different forbearance programs exist depending on your loan type. Some repayment options include:
- Lump sum payment at the end of the forbearance period.
- Spreading out missed payments over several months.
- Extending your loan term to accommodate missed payments.
If you have a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan, you won’t be required to repay the missed payments in one lump sum unless you choose to.
👉 Learn more about government-backed mortgage relief options.
When to Resume Payments
As soon as your financial situation improves, resume payments as soon as possible to minimize your future financial burden.
Need Help with Mortgage Relief?
If you’re unsure about your forbearance options or need help navigating the process, reach out to a mortgage professional.
📞 Call EstaR Mortgage at 510-463-1003 for expert guidance.