Mortgage Relief

Mortgage Forbearance:
Temporary Relief When You Need It

Forbearance temporarily pauses or reduces your mortgage payments during financial hardship — without damaging your credit like missed payments would. Learn how to request forbearance, what happens after it ends, and your repayment options. Dream Financial Management has helped homeowners nationwide since 1994.

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Mortgage Relief Guide

What Happens When Forbearance Ends?

This page is the forbearance exit & repayment guide — it focuses on what happens after the pause ends and how the missed payments may be resolved. For what forbearance is and how to enter it, start with our primary mortgage forbearance overview.

New to forbearance? See the primary mortgage forbearance page for what it is, how to request it, and what happens during the forbearance period.

When forbearance ends, the missed payments still have to be addressed. It's not loan forgiveness — the paused amounts are repaid or resolved through one of several exit paths. This guide covers those options, plus how to work with your servicer on a plan before the period runs out. For a side-by-side view of these options alongside other foreclosure alternatives, see mortgage workout options.

Key Benefits of Forbearance

No negative credit reporting during the forbearance period

No late fees accrue on the paused payments

No foreclosure proceedings during the forbearance period

Available for most loan types (FHA, VA, USDA, conventional, jumbo)

Can be requested multiple times if hardship continues

Eligibility

Who Qualifies for Forbearance?

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.

Repayment

Forbearance Repayment Options

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.

Forbearance FAQs

Does forbearance hurt my credit score?

How long can forbearance last?

What happens at the end of forbearance?

Can I refinance after forbearance?