Understanding Forbearance and Knowing Your Options
July 18, 2023
July 18, 2023
If you’re struggling to make your mortgage payments on time, you should familiarize yourself with all the payment relief options available to you.
If you are facing financial hardship and are at risk of missing a mortgage payment, we recommend that you contact your mortgage company to discuss and review all of your options. Continue reading to learn more about forbearance and other options to keep you in your home.
Forbearance is when your mortgage company allows you to make a reduced payment or pause your mortgage payment for a specified period of time. Once you’re in better financial standing, you can resume your normal payments.
Forbearance can help you reestablish your finances while keeping you on track for sustainable homeownership. Examples of hardships that could lead to forbearance include:
Note: Forbearance does not forgive payments from a mortgage, rather, it postpones the payments.
Once you have completed the forbearance plan, it’s recommended that you contact your mortgage company to discuss and review all your options. There are plenty of options that allow you to keep your home and avoid foreclosure, such as:
If you’ve exhausted all options to stay in your home, then you may choose to exit gracefully in the following ways:
There is no one-size-fits-all solution for dealing with financial hardships. However, you can be proactive by keeping the line of communication open between you and your mortgage company.
If you find yourself going through financial hardship, review the following resources to help you navigate keeping your home.
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