Mortgage Forbearance and Loan Modifications

What forbearance is

Forbearance is a temporary agreement with your mortgage servicer that pauses or reduces your mortgage payments for a set period. It does not erase what you owe. The payments are generally made up later, and how that happens depends on the terms of your specific agreement.

Forbearance can buy time while you sort out your situation, but it is important to understand what happens when the forbearance period ends before you agree to it.

What a loan modification is

A loan modification permanently changes one or more terms of your mortgage, such as the interest rate, the length of the loan, or the principal balance, in an effort to make the payments affordable again.

Modifications are not automatic and every servicer has its own requirements. A HUD-approved housing counselor can help you prepare your case and communicate with your servicer.

Questions to ask your servicer

• How long does the forbearance last, and what happens when it ends?
• Will interest keep accruing during forbearance?
• What repayment plans, modifications, or other loss-mitigation options are available to me?
• Are there any fees associated with these options?
• Can I get the answers and the final agreement in writing?

Options to consider

• Work with your mortgage servicer on forbearance, repayment plans, or a modification.
• Get free help from a HUD-approved housing counselor.
• Consult a lawyer if you need help understanding your rights or responding to the servicer.
• List the home for sale with a real estate agent if selling is the right choice.
• Consider a direct, as-is sale to an investor such as MPJ Home Solutions if you prefer not to make repairs or hold showings.
• Take more time before making a decision if your situation allows it.

Where to turn for help

The resources below are maintained by government agencies and nonprofit organizations. MPJ Home Solutions does not provide licensed counseling, and nothing on this page is an offer to purchase your property.