Mortgage Forbearance (or Payment Modification)
Homeowners have options when it comes to mortgage payments, which could help alleviate some of that financial pressure. One of those potential options is forbearance.
When finances are tight, whether due to job loss or other unexpected life changes, it can affect nearly every aspect in our lives. It’s personal and it’s intimate, especially when you’re dealing with ensuring you and your family have your basic needs met.
But homeowners have options when it comes to mortgage payments, which could help alleviate some of that financial pressure. One of those potential options is forbearance.
A brief pause.
Mortgage forbearance (or payment modification) is a pause in payments. If your mortgage lender determines you qualify, they can let you adjust or even pause your payments for a limited time.
This doesn’t mean that payment is forgiven or forgotten – you’re still obligated to repay it. This could happen over time or if you refinance or sell your house. And forbearance doesn’t typically come with extra fees, or penalties, or higher interest rates.
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You're not alone.
Financial hardship can feel overwhelming, but if you’re considering mortgage forbearance, you’re not alone. In 2020, Congress passed the CARES Act, opening up forbearance funds for homeowners with federally backed mortgages. Since then, at least 4.3 million homeowners have applied for assistance.
Get in touch with your mortgage lender or servicer. They may have other products and programs to help homeowners in your situation, and can help guide you through it.