What is a mortgage forbearance agreement?

One way to stop foreclosure in this time if crisis is to request a forbearance agreement from your lender. This is an agreement made between the mortgage lender and the borrower that has become delinquent on their monthly mortgage payments. A forbearance agreement is a temporary workout plan provided by the lender to help the homeowner bring their account current once again.

The forbearance plan is not a permanent solution for borrowers who have fallen behind on their payments. It was made for homeowners who need temporary assistance with their financial situation due to unpredicted events that have taken place in the homeowners life. 

Usually this period of time is anywhere from 3 months to an entire year. Payments required for this plan will typically be much less than the homeowners normal monthly payment and sometimes the lender will offer postpone the monthly payments until the forbearance period is over, depending on which suites your financial situation best.

The reality is that lenders do not want to foreclose on your home due to the time and amount of money it will cost them to do so. To do your part you must be the one to first contact the lender for assistance and explain to them what has caused you to temporarily fall behind on your mortgage payments. This way your lender can help you find the best workout solution that will better your financial struggles.

Remember that a forbearance agreement will only solve your financial difficulties temporarily. If you are in need of long term assistance due to a substantial decrease in income or maybe your adjustable rate loan has adjusted higher, you may want to request a loan modification for a permanent solution.

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Moe Bedard
Founder at LoanSafe.org
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.
  • Hofinannar

    Over a year ago my husband was unemployed for 1.5 years and we got about 9 paymnets behind. Now that he is working and we can make the payments again we don’t qualify for a loan modification to help bring the account current. I was instead approved for a 3 month forebearance. I was told that during those 3 months I don’t have to make the morgtgage payments. I would love to not pay it but will this look bad to Bank of America when they are deciding how to adjust my loan to pay back the past due amount??

  • larry b

    six months ago I filled out the forms for a loan modification with Nationstar mortgage I thought all my problems were solved, a week ago I got a letter saying I havent been paying the full amount of of my contractual monthly payment, which I havent Ive been paying the modified amount,I explained that my mortgage was modified,they said it wasnt, that It was a forbearance, I have a copy of the LOAN MODIFICATION AGREEMENT I had notorized ,I could go on and on with the run around this company is giveing me and from what I read on the internet about them Im not alone,what can I do ,HELP