Mortgage Relief Options

Mortgage Forbearance:
Temporary Relief When You Need It Most

Facing financial hardship? Forbearance can pause or reduce your mortgage payments for a set period. Learn how forbearance works for FHA, VA, USDA, Fannie Mae, Freddie Mac, and conventional loans — and what happens when it ends.

What Is Mortgage Forbearance?

Mortgage forbearance is a temporary pause or reduction in your monthly mortgage payments, granted by your loan servicer during periods of financial hardship. It is not loan forgiveness — you will need to repay the missed amounts. However, forbearance can give you the breathing room you need to recover financially without the immediate threat of foreclosure.

Forbearance is available for most loan types including FHA, VA, USDA, Fannie Mae, Freddie Mac, and many conventional and private loans. The terms, duration, and repayment options depend on your loan type and investor guidelines.

How Forbearance Works

1. Request Forbearance

Contact your servicer and explain your hardship. Most servicers can approve forbearance over the phone. You may need to document your hardship.

2. Payments Paused

Your payments are reduced or paused for 3-18 months depending on your loan type and circumstances. No late fees during forbearance.

3. Repayment Plan

When forbearance ends, work with your servicer on a repayment plan: lump sum, repayment plan, deferral, or loan modification.

Forbearance by Loan Type

FHA Loans — HUD Forbearance

FHA loans offer up to 12 months of forbearance for COVID-19 and other hardships. After forbearance, FHA offers several exit options:

  • COVID-19 Recovery Standalone Partial Claim — HUD pays your missed payments as a 0% interest loan, due when you sell or refinance.
  • FHA-HAMP Modification — Reduces your monthly payment to 31% of gross income through rate reduction, term extension, or partial claim.
  • Payment Supplement Partial Claim — For borrowers who can resume current payments but have accumulated arrears.

Key Benefit: FHA's partial claim is interest-free and subordinate — you don't pay it until you sell, refinance, or pay off the loan.

VA Loans — VA Forbearance

VA loans offer up to 12 months of forbearance for COVID-19 and other approved hardships. The VA's COVID-19 Refund Modification and other programs provide generous exit paths:

  • VA Disaster Modification — Can extend the loan term up to 480 months and reduce the rate. No appraisal required.
  • VA Affordable Modification — Targets 31% DTI ratio. May defer principal to bring payment down.
  • Payment Deferral — Missed payments moved to the end of the loan term as a non-interest-bearing balance.

Key Benefit: VA loans have some of the most borrower-friendly forbearance exit options available — veterans should always explore VA-specific programs first.

USDA Loans — USDA Forbearance

USDA loans offer up to 12 months of forbearance for COVID-19 and up to 12 months for other hardships. USDA exit options include:

  • Term Extension — Extend loan term up to 480 months to reduce monthly payments. No appraisal or income verification required.
  • Mortgage Recovery Advance — USDA pays a portion of missed payments as a soft subordinate lien — 0% interest, due on sale or refinance.
  • Payment Deferral — Move missed payments to the end of the loan, non-interest-bearing.

Key Benefit: USDA's Mortgage Recovery Advance works similarly to FHA's Partial Claim — it's a 0% subordinate loan that doesn't increase your monthly payment.

Fannie Mae & Freddie Mac — GSE Forbearance

Fannie Mae and Freddie Mac loans offer up to 18 months of forbearance for COVID-19 and up to 12 months for non-COVID hardships. GSE exit options:

  • Flex Modification — Reduces payment by up to 20% through rate reduction, term extension to 480 months, and principal forbearance.
  • Payment Deferral — Missed payments moved to the end of the loan as a non-interest-bearing balloon. No modification required.
  • Reinstatement — Pay all missed amounts in a lump sum to bring the loan current.
  • Repayment Plan — Spread missed payments over 3-12 months added to your regular payment.

Not sure if you have a Fannie Mae or Freddie Mac loan? Use the Fannie Mae Loan Lookup or Freddie Mac Loan Lookup tools.

Forbearance Exit Options: What Happens When Forbearance Ends

When your forbearance period ends, you have several options to address the missed payments. Your servicer must evaluate you for all available options before requiring a lump sum payment.

Exit Option How It Works Best For
Lump Sum Reinstatement Pay all missed payments at once Borrowers with accessible savings or alternative funding
Repayment Plan Spread missed payments over 3-12 months added to regular payment Borrowers who can afford more than current payment but not lump sum
Payment Deferral Move missed payments to end of loan; resume regular payment immediately Borrowers who can resume full current payment but can't pay extra
Partial Claim (FHA) HUD pays missed payments as 0% interest subordinate loan FHA borrowers who can resume current payment
Loan Modification Restructure loan terms to reduce payment permanently Borrowers with long-term hardship who can't afford current payment
Short Sale / Deed-in-Lieu Sell home or transfer deed; exit mortgage with potential deficiency waiver Borrowers who can no longer afford the home long-term

Don't Wait Until Forbearance Ends — Plan Your Exit Now

The biggest mistake homeowners make is waiting until the last day of forbearance to figure out repayment. Contact us now and we'll help you evaluate your options, negotiate with your servicer, and lock in the best exit strategy before time runs out.

Get Free Forbearance Consultation

Common Forbearance Questions

Will forbearance hurt my credit score?
Does forbearance stop foreclosure?
Do I need to pay a lump sum when forbearance ends?
Can I sell my house while in forbearance?
How long can I be in forbearance?
Will interest continue to accrue during forbearance?

Related Resources

Don't Wait — Forbearance Won't Last Forever

Every day you wait is a day less to plan your exit. Our certified specialists will evaluate your situation, identify your best repayment option, and negotiate with your servicer before your forbearance period ends.