Forbearance
A temporary pause or reduction of mortgage payments granted by the servicer when a borrower faces hardship.
Forbearance is not loan forgiveness. It's an agreement that you can skip or reduce payments for a defined period, usually three to twelve months, without those missed payments triggering foreclosure. Interest still accrues, and the skipped amounts have to be repaid eventually.
Repayment options at the end of forbearance typically include resuming normal payments plus a catch-up plan, modifying the loan terms to roll missed payments into the back end, or paying the missed amount in a lump sum if circumstances allow.
Borrowers should always work through the loan servicer rather than ignoring missed payments, proactive communication is the single biggest factor that determines what forbearance and modification options remain available.
Related terms
Other terms you'll see alongside Forbearance
A permanent change to the terms of an existing mortgage to help a borrower facing long-term hardship stay in the home.
The legal process by which a lender takes possession of and sells a property after a borrower defaults on the mortgage.
The company that collects monthly payments, manages the escrow account, and handles borrower service on a loan after closing.
Any payment made toward the loan balance beyond the scheduled monthly principal amount.
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