If you are struggling to make your mortgage payment right now, your servicer may be offering you a forbearance agreement. Before you sign anything, you need to understand exactly what you are agreeing to — because forbearance and forgiveness are very different things, and the devil is always in the details.
What Is Mortgage Forbearance?
Forbearance is a temporary agreement with your mortgage servicer to pause or reduce your monthly payments for a set period. It is not forgiveness. The missed payments do not disappear — they are deferred, and you will owe them at the end of the forbearance period.
This matters enormously. Many Florida homeowners who took COVID forbearances in 2020 were surprised to find that their servicer expected a lump-sum repayment of all missed payments at the end of the forbearance period. Some were able to negotiate repayment plans. Others faced immediate foreclosure threats when they could not pay.
Red Flags in Forbearance Agreements
Before signing any forbearance agreement, have an attorney review these key provisions:
- Repayment terms: Is the lump sum required immediately, or can it be spread over time?
- Credit reporting: Will missed payments be reported to credit bureaus?
- Modification eligibility: Does entering forbearance affect your ability to apply for a permanent modification?
- Extension rights: What happens if your hardship continues beyond the initial forbearance period?
- Foreclosure moratorium: Does the agreement explicitly state foreclosure will be paused during forbearance?
Forbearance Can Be a Bridge — If Used Correctly
Forbearance is not inherently bad. Used strategically, it can buy time to stabilize your situation and transition to a permanent modification. But it requires active management and, ideally, guidance from an attorney who understands the full picture.
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DISCLAIMER: This article is for general informational purposes only and does not constitute legal advice. Every foreclosure situation is unique. Contact our office for a consultation specific to your circumstances: mattweidnerlaw.com/contact
