Temporary payment pause or reduction
Forbearance
Forbearance can temporarily reduce or pause payments. It does not automatically erase the amount not paid, so the exit plan matters as much as the pause.
How will the paused amount be handled when forbearance ends? Do not assume a lump sum will or will not be required.
Confirm in writing
- Start and end dates, payment amount, and reporting treatment.
- How taxes, insurance, escrow, and fees will be handled.
- When the servicer will evaluate the next option.
- What information you must provide before the pause ends.
Good fit signals
- The hardship is temporary or its duration can be estimated.
- There is a credible plan for resuming payments.
- The written exit paths are understandable and realistic.