Life is unpredictable. A job loss, unexpected expenses, or even a natural disaster can create financial challenges for homeowners. If you're struggling to keep up with your mortgage payments, you’re not alone—and you do have options. One key resource that many homeowners overlook? Mortgage forbearance.
What Is Mortgage Forbearance?
Simply put, mortgage forbearance allows homeowners to temporarily pause or reduce their mortgage payments during financial hardship. As Bankrate explains:
“Mortgage forbearance is an option that allows borrowers to pause or lower their mortgage payments while dealing with a short-term crisis, such as a job loss, illness, or other financial setback . . . When you can’t afford to pay your mortgage, forbearance gives you a chance to sort out your finances and get back on track.”
Many people mistakenly believe forbearance was only available during the COVID-19 pandemic. While it was widely used then, it remains a valuable tool today for homeowners facing temporary financial setbacks—helping prevent delinquency and, ultimately, foreclosure.
The Current State of Mortgage Forbearance
Forbearance continues to serve as a safety net for those who need it. While overall forbearance rates have increased slightly in recent months, it’s important to understand the reasons behind this shift.
According to Marina Walsh, VP of Industry Analysis at the Mortgage Bankers Association (MBA):
“The overall mortgage forbearance rate increased three basis points in November and has now risen for six consecutive months.”
At first glance, this might seem concerning, but let’s put it in perspective. The increase is largely driven by two recent hurricanes—Helene and Milton—which created temporary financial hardships for many homeowners. Nearly half (46%) of borrowers currently in forbearance cite natural disasters as the reason for their financial struggles.
Even with this slight uptick, forbearance rates remain significantly lower than during the pandemic and continue to reflect a small portion of homeowners overall.
Why Forbearance Matters
Forbearance is more than just a financial tool—it’s a lifeline. It provides homeowners with breathing room to get back on track without immediately facing foreclosure.
While most homeowners today don’t need forbearance, thanks to strong home equity and a stable housing market, it’s reassuring to know this option is available if needed.
What Should You Do If You Need Forbearance?
If you or someone you know is struggling with mortgage payments:
✔ Contact your lender – Don’t wait until you’ve missed payments. Reach out early to discuss your options.
✔ Understand the terms – Forbearance isn’t automatic; you must apply and work with your lender to determine eligibility.
✔ Make a plan – Forbearance is temporary, so it’s important to have a strategy for resuming payments when the period ends.
In challenging times, knowing your options can bring peace of mind. Mortgage forbearance is working exactly as intended—helping homeowners facing short-term financial difficulties stay in their homes. If you or someone you know is struggling, let’s connect and explore the best path forward.
