1. What a Forbearance Does
A loan forbearance is a temporary agreement between you and your lender to pause or reduce your monthly mortgage payments for a set period—usually 3 to 12 months.
It doesn’t erase what you owe but allows breathing room during hardship such as job loss, medical emergencies, or natural disasters.
Under Cal. Civ. Code § 3273.01 and the federal CARES Act (for federally backed loans), servicers are encouraged or required to offer forbearance to borrowers experiencing documented hardship.
2. Who Qualifies
Forbearance is generally available to homeowners who:
- Are experiencing a temporary loss of income or increase in expenses
- Have not yet completed a foreclosure sale
- Can resume payments after the forbearance ends
If your loan is owned or guaranteed by Fannie Mae, Freddie Mac, FHA, VA, or USDA, your servicer must follow federal forbearance guidelines.
3. How to Request a Forbearance
- Contact your lender early. Ask for the loss mitigation or home retention department.
- Submit a written hardship request explaining the cause and expected duration of hardship.
- Provide supporting documentation, such as pay stubs, medical bills, or unemployment verification.
- Request written confirmation of approval, terms, and repayment plan.
Always keep copies of every document and confirmation number.
4. What Happens After Forbearance
Once your forbearance period ends, you must resume regular payments and address any missed balance.
Lenders may offer:
- Reinstatement: Pay the missed amount in a lump sum
- Repayment plan: Add missed payments to future months
- Loan modification: Permanently adjust loan terms
If you take no action, foreclosure proceedings may resume.
5. Pitfalls to Avoid
- Ignoring lender communication: You must stay in contact during and after forbearance.
- Not budgeting for missed payments: Forbearance is not forgiveness.
- Failing to confirm in writing: Verbal agreements aren’t enough.
A forbearance can give you time to recover—but planning for what happens next ensures you don’t end up right back in default.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
