Here’s the truth—mortgage forbearance can be a way to breathe when you’re drowning financially. Especially when life throws curveballs (job loss, medical bills…life).
If you don’t know how mortgage forbearance works, you’ll end up making choices that’ll punch you in the wallet later. I’ve seen people mess this up. Friends. Clients. Good people, bad timing. And the worst part? Many mistakes were completely avoidable. So, I want to walk you through the traps people fall into when they ask for forbearance—and how you can do it the right way.
First: Let’s get clear on how mortgage forbearance works
When we say mortgage forbearance, what we mean is a deal between you and your lender to pause or reduce your mortgage payments for a set time. Usually temporary hardship stuff. This isn’t forgiveness. You still owe the money. You’re just hitting the snooze button on the payment.
Here’s what forbearance looks like in real life:
- You get sick or laid off. Can’t make payments.
- You call your loan servicer. Tell them what’s up.
- You agree to 3-6 months no payments (sometimes more).
- After that? Time to pay the piper.
The key here is this: know what happens when the forbearance ends. That’s where people go sideways.
Your loan doesn’t magically disappear. The money piles up. And if you’re not ready, it gets ugly. Like foreclosure ugly.
Let’s talk about the big, repeat-offender mistakes I see people make when requesting mortgage forbearance
1. Thinking forbearance = forgiveness
Biggest rookie mistake. People think “Oh I got approved for forbearance, I’m off the hook.” No. This isn’t student loan forgiveness. It’s a pause. The debt is not canceled. It’s just been dressed in a hoodie and hiding in the corner, waiting to join the party again with compound interest, penalties, and paperwork.
2. Not asking about repayment options
You accept mortgage forbearance, feel relieved…then BOOM. Lender says, “Cool, now pay back those missed payments in a lump sum next month.” That lump sum? Could be $10k, $20k, more.
Ask this upfront:
- Can we add the missed payments to the back of the loan?
- Can I go on a repayment plan?
- What happens if I can’t catch up later?
If your lender can’t answer that clearly, don’t sign anything yet.
3. Ignoring credit score consequences
Weird one: asking for forbearance might not tank your credit…but how they report it could. If your servicer reports “late” instead of “deferred,” boom—your credit score gets punched in the face. So when you’re talking with your lender, ask how are you reporting this to credit agencies? Protect yourself now so you can still qualify for a refinance or car loan later.
4. Thinking you’re off the hook for escrow
Here’s something people miss: Escrow doesn’t stop during forbearance. You still owe property taxes. You still owe insurance. Say your mortgage payment is $1,500—$1,000 to the loan, $500 to escrow. If you’re on forbearance, that $500/month for taxes and insurance might still be due. Or your servicer pays it for you and tacks it onto the balance later. If you don’t factor that in, things can snowball. Fast.
5. Not getting it in writing
If it isn’t in writing, it didn’t happen. I don’t care if the guy on the phone says you’re good—it doesn’t count.
Get every term written down:
- How long is the forbearance?
- What’s the repayment plan?
- What happens if hardship continues?
Email it. Print it. Screenshot it. Your future self will thank you.
6. Waiting too long to call your lender
If you lost income, don’t wait 3 months to call your bank. They’ll assume you just blew them off and start foreclosure proceedings. Call the moment things feel tight—not when it’s a full-blown crisis. Trust me, it’s 10x easier to negotiate when you’re proactive, not reactive.
7. Thinking you only get one shot at forbearance
Depending on your loan program, you might qualify for extensions. If things still suck after your initial period ends, ask for an extension.
Note: FHA/VA/USDA loans may have guidelines that allow multiple extensions — always clarify based on your loan type.
FAQ’s
Will this affect my credit report?
Some lenders may mark you as late, which can seriously damage your credit score. Ask exactly how your forbearance will be reported to credit bureaus.
How long is the forbearance period?
You need a clear end date so you know when your payments resume. Don’t guess—get it in writing.
What are my repayment options?
Some lenders demand a lump sum when forbearance ends. Others may offer repayment plans. Make sure you know the terms upfront.
Will escrow be affected?
Yes, potentially. Your property taxes and homeowners insurance don’t stop. You’ll still owe them, so ask how that’s handled.
Can this be extended if needed?
If your financial situation doesn’t improve quickly, it’s important to know whether you can apply for an extension.
Will interest accrue during this time?
In most cases, yes. Interest often continues to build, which could increase your total loan balance. Make sure you understand how much extra you’ll owe later.
Real Story: What happens when you don’t ask
One of our readers from Atlanta, let’s call him Jake, lost his job after COVID layoffs. He got mortgage forbearance with his servicer. But never asked about what happens after. Fast forward 6 months—he’s back to work, but now owes $9,000 to restart the loan. Lender says, “No lump sum, no reinstatement.”
He didn’t qualify for refinance. His credit got hit. He had to borrow from family like a teenager asking for gas money. All of that? Avoidable. Know how mortgage forbearance works and get clear up front to avoid this trap.