What is a mortgage forbearance, and how long is it for?

Mortgage forbearance is a temporary agreement between a homeowner and a lender to suspend or reduce payments due on a loan. The agreement typically lasts for a specified period of time, usually several months. During this period, the lender agrees not to pursue collection efforts, such as foreclosure or repossession of the home. This allows the homeowner to catch up on missed payments or to gain relief from other financial hardships. The agreement must be made in writing and acknowledged by both parties. After the forbearance period ends, the homeowner is responsible for making up the missed payments and bringing the loan current.

Written by

John Smith, Apr, 24 2023