Forbearance is a temporary pause or reduction in your mortgage payments granted by your loan servicer during a financial hardship. It's not loan forgiveness — you'll need to repay the missed amounts later. But unlike simply missing payments (which damages your credit and leads to foreclosure), forbearance is an agreement with your servicer that keeps your loan in good standing. During forbearance, the servicer agrees not to initiate foreclosure.
You generally qualify if you're experiencing a financial hardship such as: job loss or reduced income, medical emergency or illness, natural disaster affecting your home or income, death of a co-borrower or family member, divorce or separation, or other circumstances that temporarily affect your ability to pay. You don't need to be behind on payments to request forbearance — you can request it proactively if you see a hardship coming. Documentation requirements vary by loan type and servicer, but most require a hardship statement and may require proof of income reduction.
| Option | How It Works | Best For |
|---|---|---|
| Lump Sum Repayment | Pay all missed payments at once when forbearance ends | Borrowers with a known near-term cash influx |
| Repayment Plan | Spread missed payments over 3-12 months on top of regular payment | Most common. Manageable increases. |
| Payment Deferral | Move missed payments to the end of the loan | Best option — no increase in monthly payment |
| Loan Modification | Permanently change loan terms to make payments affordable | Long-term hardship, need permanently lower payment |
| Partial Claim (FHA) | HUD advances a no-interest loan to cover missed payments | FHA borrowers who qualify |
Important: Forbearance is not automatic forgiveness. The missed payments must be repaid. Know your exit strategy before entering forbearance — ask your servicer about repayment options upfront. For most borrowers, a payment deferral (moving missed amounts to the end of the loan) is the best outcome: resume your normal payment with no increase.