Last updated: October 5, 2026
If a job loss, medical emergency or disaster makes it hard to pay your mortgage, you have more options than you might think. The most important step is to act early: contact your servicer before you miss payments, or as soon as possible after. Here are the main tools and how they work.
Forbearance: a temporary pause
Forbearance lets you pause or reduce payments for a set period, often a few months, with possible extensions. Interest usually continues to accrue, and the missed amount must be repaid later. It is designed for short-term hardships when you expect your income to recover.
How the missed payments are repaid
Suppose your payment is $2,000 and you receive six months of forbearance. That is $12,000 to resolve. Common options:
- Lump sum: repay the $12,000 at once, if you can.
- Repayment plan: for example, an extra $1,000 a month for 12 months on top of the regular payment.
- Deferral or partial claim: the missed amount is moved to the end of the loan or into a separate, often interest-free balance due when you sell, refinance or pay off the loan. Availability depends on whether your loan is backed by Fannie Mae, Freddie Mac, FHA, VA or USDA.
- Loan modification: permanently changes the loan terms, such as extending the term or lowering the rate, to make payments affordable.
Don’t assume a lump sum is required; ask your servicer which options apply to your loan, and get the agreement in writing.
Other options when hardship is long-term
- Loan modification if your income has permanently dropped.
- Selling the home while you still have equity, to avoid foreclosure.
- Short sale or deed-in-lieu when you owe more than the home is worth; these have serious credit and possible tax consequences.
Steps to take now
- Call your servicer (the number is on your statement) and explain your hardship.
- Ask what options exist for your loan type and what documents are needed.
- Keep notes of every call, including names and dates, and save all letters.
- Contact a free HUD-approved housing counselor for help reviewing options.
- Review your budget; see how escrow works if taxes or insurance changed your payment.
Avoid mortgage relief scams
- Never pay upfront fees for mortgage help.
- Never sign over your deed or send payments to anyone but your servicer.
- Be wary of anyone guaranteeing to stop foreclosure.
After the hardship
Once you are back on track, rebuild your emergency fund. If rates fall, refinancing could lower your payment, and a recast can reduce it after a lump-sum payment.
Frequently asked questions
What is mortgage forbearance?
Forbearance is a temporary agreement with your servicer to pause or reduce your mortgage payments during a hardship such as job loss, illness or a disaster. It is not forgiveness: the skipped amount must be repaid later.
How do I repay forbearance?
Common options are a lump-sum payment, a repayment plan that adds an extra amount to your regular payment for a period, a deferral that moves the missed amount to the end of the loan, or a loan modification. Options depend on your loan type and servicer.
Does forbearance hurt my credit?
An approved forbearance plan generally should not be reported as late payments if you follow its terms, but check how your servicer reports it and keep written confirmation.
Should I pay a company to help me get mortgage relief?
No. Your servicer and HUD-approved housing counselors can help for free. Under federal rules, companies generally cannot charge upfront fees for mortgage relief services, and requests for upfront payments are a common sign of a scam.
Sources: CFPB: Help for homeowners; CFPB: Find a HUD-approved housing counselor; HUD.
This article is for educational purposes only and is not financial advice. Loan programs, rates and rules change; confirm details with your lender or a HUD-approved housing counselor.