What Happens When Forbearance Ends?
You paused your mortgage payments through forbearance. Now the pause is ending. You do NOT have to pay everything back at once — but you need to act before the deadline.
Call your servicer BEFORE forbearance expires:
Ask for “post-forbearance options” or “loss mitigation”
If your servicer won't help: 888-995-HOPE (free HUD counselor)
The #1 Myth
“I have to pay all the missed payments back in one lump sum.”This is almost never true. Lump-sum repayment is only ONE of three options, and most servicers don't require it. If yours does, you can negotiate or escalate to a HUD counselor.
Your 3 Options
Deferral (Best Option for Most People)
Available for FHA, VA, USDA, and many conventional loans
The missed payments are moved to the end of your loan. Your monthly payment stays the same. You resume normal payments immediately. You don't pay more per month — the loan just gets extended by the number of months you were in forbearance.
Example: If you missed 6 payments of $2,000 each ($12,000 total), that $12,000 is added as a non-interest-bearing balance due when you sell, refinance, or pay off the loan. Your monthly payment remains $2,000.
How to get it: Call your servicer and ask specifically for a “partial claim” (FHA) or “payment deferral” (conventional/VA). They may require you to make 1-3 trial payments to demonstrate you can resume.
Repayment Plan
Spread missed payments over 6-12 months
The missed amount is divided into equal portions and added to your regular monthly payment over 6-12 months. Your payment goes up temporarily, then returns to normal.
Example: You missed 6 payments of $2,000 ($12,000). Spread over 12 months, you pay $2,000 + $1,000 = $3,000/month for one year. After that, it drops back to $2,000.
Best for: People whose income has recovered and can afford a higher payment for a limited time.
Loan Modification
If you still can't afford the original payment
If your financial situation has permanently changed and you can't go back to the original payment amount, a loan modification reduces your rate, extends your term, or both. This is a separate application process — you'll need to prove ongoing hardship.
How it works: The servicer rolls the missed payments into the loan, then restructures the terms to lower your monthly payment. The unpaid balance increases, but the monthly number drops.
Best for: People whose income permanently dropped (job change, disability, divorce) and cannot resume the pre-forbearance payment.
What If My Servicer Says “Lump Sum Only”?
Some servicers default to demanding the full missed amount immediately. This is legal but not your only option. Steps to escalate:
- Ask to speak with the loss mitigation department specifically (not the regular customer service line).
- If they refuse alternatives, say: “I'd like to be evaluated for all available loss mitigation options under Regulation X.”
- Call 888-995-HOPE and get a HUD counselor assigned. They can contact your servicer directly and have leverage you don't.
- File a complaint with the CFPB at consumerfinance.gov/complaint. Servicers respond faster when there's a federal complaint on file.
- Read our full guide: “My Servicer Won't Help Me”
Does Forbearance Hurt Your Credit?
During forbearance: If your servicer agreed to forbearance, they should report your account as “current” or “in forbearance” — not delinquent. Check your credit report to verify.
After forbearance: If you transition to a deferral, repayment plan, or modification, your account should continue reporting as current. If you do nothing and the servicer resumes normal reporting, the missed payments will show as delinquent.
If they reported incorrectly: Dispute with all three bureaus. Forbearance reporting errors are common and fixable.