Forbearance Option

What is a Forbearance?

With this option, you and your mortgage company agree to temporarily suspend or reduce your monthly mortgage payments for a specific period of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.

Forbearance may be an option if:

• You are ineligible or do not want to refinance
• You are facing a short-term hardship
• You are several months behind on your mortgage payments

Forbearance Calculator
Use this tool to estimate how a forbearance might help you.

What are the benefits?

• Lower or temporarily suspend your monthly payment—giving you time to improve your financial situation and get back on your feet
• Less damaging to your credit score than a foreclosure
• Stay in your home and avoid foreclosure

How does it work?

Forbearance reduces your monthly mortgage payment—or suspends it completely—during the forbearance period (usually between 90-180 days). If you qualify for forbearance, you and your mortgage company will sign an agreement that will outline the forbearance terms:

• length of forbearance period,
• reduced payment amount (if the payment is not suspended), and
• the terms of repayment.

After the forbearance period has ended, you will need to repay the amount that was reduced or suspended. However, you usually have a few ways you can repay—moving the payments to the end of your mortgage, which will lengthen the term; making a one-time payment for the amount; or adding a specific amount to your payments each month until the entire amount is repaid (see Repayment Plan for more information).

If you are still struggling with your mortgage payments after the forbearance period is over, you may be able to qualify for a modification that would permanently change the terms of your mortgage.

Forbearance Calculator
Use this tool to estimate how a forbearance might help you.

Next steps

	Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need: your mortgage statements, including information on a second mortgage (if applicable) your other monthly debt payments (e.g., car or student loans, credit card payments), and your income details (paystubs and income tax returns).
	Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment and if this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.
	Contact your mortgage company—Tell them you are interested in a Forbearance and you want to see if you qualify.

The biggest mistake you can make is to wait any longer to take action. Contact your mortgage company today to see if a Forbearance is an option for you. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor.

The videos on this site depict real homeowners talking about their personal experiences in getting help with their mortgage, or show real housing counselors providing homeowners with mortgage assistance. Many homeowners have achieved similar results but individual results vary depending on multiple factors such as property value, income, credit, work situation, etc. The information in the videos is not an endorsement by Fannie Mae of third party service providers.