What is Mortgage Forbearance in real estate?
Mortgage forbearance is a program most lenders and mortgage servicers offer to homeowners experiencing financial hardship that temporarily pauses or reduces monthly payments. Forbearance typically lasts 3 to 6 months. In situations such as the COVID-19 pandemic, forbearance programs have been extended for as much as 12 to 18 months.
Forbearance helps homeowners avoid foreclosure. Forbearance does not eliminate missed payments, instead missed or partial payments are usually added to the end of your amortization schedule. Forbearance programs vary, if you are struggling to make your monthly mortgage payments, please contact your lender or mortgage servicer.
