14 Options to prevent foreclosure
Forbearance Plan
Temporarily relief while you regain stability
Pause or Reduce Your Mortgage Payments During a Temporary Hardship
What Is a Forbearance?
A forbearance plan is a formal agreement between you and your mortgage lender to pause or temporarily reduce your mortgage payments for a set period of time usually 3 to 6 months due to a short-term financial hardship.
It does not erase your debt. Instead, it buys you time to recover without making full mortgage payments while stopping the foreclosure process.
Who Should Consider a Forbearance?
This option is ideal for homeowners who:
- Are experiencing temporary hardship, such as job loss, illness, or disaster
- Expect their income to recover within the next few months
- Need time to apply for loan modification or refinance
- Want to avoid foreclosure without immediately paying arrears
- Contact your mortgage servicer and request a forbearance due to financial hardship.
- Submit required documentation:
- Hardship letter or explanation
- Proof of income loss (e.g., unemployment, reduced hours, medical leave)
- Mortgage statement and ID
- Your lender may approve a:
- Full payment pause (no payments required)
- Partial payment plan (reduced monthly payments)
- After the forbearance period ends, you’ll need to:
- Pay the missed amounts in a lump sum
- Set up a repayment plan
- Or apply for a loan modification
Benefits of Forbearance
- Immediate relief from mortgage payments
- Stops foreclosure temporarily while the plan is active
- Protects your credit if started before missing payments
- Can buy time to apply for other options (modification, sale, etc.)
Considerations & Risks
- You’ll need to repay everything you missed after the plan ends
- Not all lenders automatically offer loan modification after forbearance
- If no plan is in place at the end, foreclosure may resume
- Interest may continue to accrue during forbearance
What You’ll Need to Apply
- Most recent mortgage statement
- Hardship explanation or documentation
- Proof of income loss (or unemployment)
- Budget showing your current expenses
Timeline
- Application: 1–7 business days to review
- Typical plan length: 3–6 months (may be extended in some cases)
- Post-forbearance transition: 30–60 days to arrange repayment, modification, or sale
Real Example
Luis, a rideshare driver in Riverside, lost work during a city shutdown. He was granted a 6-month forbearance. After returning to full-time work, he entered a loan modification to stretch out missed payments. Foreclosure was avoided and his credit stayed intact.
Frequently Asked Questions
Q: Do I have to pay everything back at once?
🅰️ Not always. Many lenders will offer repayment plans or add the missed balance to the loan through a modification.
Q: Does interest still accrue?
🅰️ Yes. Forbearance pauses your payments, but interest often continues unless your lender says otherwise.
Q: What if I still can’t afford payments when the plan ends?
🅰️ You can request an extension or apply for a loan modification. It’s critical to act before the plan ends.
Need Help Requesting or Managing a Forbearance?
We’ll walk you through the entire process. Our team can:
- Submit your request and hardship documents
- Help you negotiate better terms
- Prepare your transition strategy before the plan ends
- Set up a loan modification or sale if needed