Options after a Mortgage Forbearance

It’s been about six months since the onset of the pandemic. For homeowners experiencing reductions in income or financial hardship, the CARES Act provided welcome relief when it was first introduced in the early days of the COVID-19 crisis.

Nearly 4 million Americans chose to set up a forbearance to pause payments on their mortgages.

Homeowners with federally backed mortgages could ask their servicers for a forbearance, without documenting financial hardship, and delay their mortgage payments for up to 180 days, with another 180-day extension available upon request when the first forbearance period ends.

These relief programs made it possible for many people to stay in their homes while dealing with the financial impacts of the pandemic crisis.

As we all manage through the changes that have come with the Pandemic, from social distancing to at-home school sessions, many homeowners are now asking “What’s next?” as mortgage forbearance relief options hit deadlines.

Figuring Out Next Steps after Mortgage Forbearance

Figuring out the next steps can help you feel more confident in understanding your options and what to expect.

For those who started their forbearance earlier in the pandemic, the temporary pause on payments might be coming to an end. However, it could be possible to extend the forbearance or consider other approaches.

With lawmakers continuing to debate relief options, many people face financial pressure and are having trouble understanding their next steps.

When looking at the options available to keep your home (or leave your home) it’s easy to get confused. There are a lot of industry terms to take in, assess, and then decide what’s in your best interest. It’s normal to feel stressed in considering what you want.

Successfully Moving on After Forbearance

People frequently enter a forbearance due to a temporary setback. Those who successfully prepare for the end of forbearance look to understand the options available and what makes the most sense for their situation.

Each person has a different financial situation and yet many of us with mortgages are now reaching the end of a forbearance. Many of us may want to keep our homes and consider those options. Others of us may find relief in considering options to leave both the responsibility to pay the mortgage and the home.

We’re Here for You

A good first step is to work through this self-directed learning course.

You might also find it helpful to reach out directly to the Homeowner’s HOPE™ Hotline: 888-995-HOPE(4673). Our counselors have helped thousands of people in similar circumstances identify and weigh their options, and we can help you, too.

Caring counselors help people figure out the post-forbearance process, develop a budget that works for their specific circumstances, intervene with loan servicers to identify available loan modification options, and then create a plan to move forward after forbearance.