- Who sends it
- Your mortgage servicer
- What it starts
- A set number of months of reduced or paused payments, ending on a date in the letter
- Do this first
- Write down the end date and call your servicer at least 30 days before it
What the forbearance letter says
Forbearance is an agreement that you can pay less, or nothing, for a limited time while you get through a hardship. The letter should tell you how many months it lasts, what (if anything) you pay each month and when each payment is due, and whether the loan will be current when the plan ends.
- Under federal rules, if a servicer offers a short-term forbearance (six months or less of payments) before your application is complete, it must promptly send a written notice, generally within 5 business days. The notice must state the payment terms and how long the plan lasts, say that it was offered on an incomplete application, say that other options may be available, and tell you that you can still finish your application to be reviewed for all of them.
- FHA loans: the servicer must send the Forbearance Agreement within 15 days of approval, and a new one for each extra period. It must show the number of months, the monthly amount if any, that no late fees will be charged, and that you may pay ahead at any time. You do not have to sign and return it. Each period is one to three months, up to 12 months in total for one default.
- Fannie Mae loans: plans run no more than three months at a time and generally no more than 12 months in total. Late charges do not build up during the plan. If you owe a reduced payment, it must arrive by the last day of the month it is due.
- VA loans: VA calls it special forbearance. VA says it does not add your missed payments to the end of the loan, so you need to work out with your servicer how you will pay after it ends.
- USDA direct loans: USDA can grant a payment moratorium of up to 2 years. Afterward the loan is reamortized to include the deferred amount.
Paused, not forgiven
The CFPB puts it simply: forbearance does not erase or reduce what you owe. You must repay the missed or reduced payments. Depending on the plan, interest on those amounts may keep adding up until they are repaid. Read your letter for how the missed amount will be handled, and ask if it does not say.
While you are doing what a short-term forbearance offered on an incomplete application requires, federal rules bar the servicer from starting a foreclosure, moving for a foreclosure judgment or holding a sale. For FHA loans, forbearance is not available once the first legal step in a foreclosure is complete, so ask early.
The end-of-forbearance letter: what happens next
Near the end of the plan you should hear from your servicer. What it must do depends on your loan:
- Federal rule for a short-term forbearance offered on an incomplete application: before the forbearance ends, if you are still behind, the servicer must contact you to ask whether you want to complete your application and get a full review.
- Fannie Mae loans: the servicer must start trying to reach you no later than 30 days before the plan ends. When the plan is over, one of four things must happen: you catch up, you are approved for another option, the loan is paid off, or the servicer refers the loan to foreclosure as the law allows.
- FHA loans: during the month the agreement ends, the servicer must contact you to see if you qualify for more forbearance (as long as you would not be more than 12 months behind), a repayment plan, or a permanent option.
- If you stop following an FHA forbearance for 60 days without telling the servicer why, the plan is treated as failed and the servicer must review you for other options or start foreclosure.
Ways to handle what you missed
Paying it all at once (reinstatement) is one choice, but most loan programs have others. Ask your servicer which ones your loan allows:
- Repayment plan: your regular payment plus an extra amount for a set time. Freddie Mac describes plans of more than one month and up to 12 months.
- Payment deferral or partial claim: the missed amount is set aside with no interest and comes due when you sell, refinance or pay off the loan. Fannie Mae and Freddie Mac offer payment deferral when the hardship is over. FHA has a partial claim, and VA's new partial claim may not be offered by every servicer until November 28, 2026.
- Loan modification: a permanent change to the loan if you cannot afford your old payment.
- If you cannot keep the home, a short sale or deed in lieu.
What to do this week
- Put the end date on your calendar, and set a reminder 45 days before it.
- Pay any reduced amount the letter requires, on time, and keep proof.
- If your hardship is over, call and say so, and ask to be reviewed for a payment deferral or partial claim. If it is not over, ask whether you can get more forbearance and how long your loan program allows.
- Finish your loss mitigation application so you can be reviewed for every option. The hardship letter tool can help you explain what happened, and the loss mitigation letters page explains the letters that come next.
- Get the end-of-forbearance plan in writing before the forbearance ends. A free HUD-approved housing counselor at (800) 569-4287 can help you compare options.
- If your servicer is not answering, write it down and file a complaint with the CFPB or call (855) 411-2372. For a VA loan, call a VA loan technician at 877-827-3702, option 6.
These rules come from federal law and the loan programs, so they are the same in every state. If the loan goes to foreclosure after forbearance, your state's process controls the timeline.
Scams tied to forbearance
The end of a forbearance is a stressful moment, and scammers know it. Watch for:
- Callers who say your forbearance is ending and you must pay them, or pay a "processing fee", to extend it. Forbearance and deferrals from your servicer are free.
- Anyone who asks for a fee before you have signed an agreement with your servicer. A company that is not your lawyer cannot charge for mortgage relief until then.
- Anyone who tells you to stop talking to your servicer, your housing counselor or your lawyer.
- Anyone who asks you to sign over your deed, or to send money anywhere other than to your servicer or the closing agent named in your papers.
- Anyone who says they are with the government or your lender without proof. Call the number on your own statement or letter to check.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
Do I have to repay everything at once when forbearance ends?
Not always. Many loan programs offer a repayment plan, a payment deferral or partial claim, or a modification. Ask your servicer, in writing and well before the end date, which options your loan allows.
Do I need to sign the forbearance agreement?
It depends on the loan. FHA says you do not have to sign and return its forbearance agreement. Other letters may ask you to accept by signing or by making the first payment. Follow the instructions in your letter and keep a copy.
Will I be charged late fees during forbearance?
Fannie Mae does not allow late charges to build up during a forbearance plan, and an FHA forbearance agreement must say no late fees will be charged. If you stop following the plan, late charges can start again.
What if I cannot pay even the reduced amount?
Call your servicer before the payment is due and ask about other options. Missing the plan's payments can end the forbearance and let foreclosure move forward.
Keep reading
- Late notice and early intervention letterThis letter is a warning, not a foreclosure. Federal rules make your servicer reach out early and tell you about help. In most cases a foreclosure cannot start until you are more than 120 days behind, so this is the best time to act.
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.
Sources
- 12 C.F.R. § 1024.41, loss mitigation procedures (eCFR)
- Supplement I to 12 C.F.R. part 1024, official interpretations of § 1024.41 (eCFR)
- Fannie Mae Servicing Guide D2-3.2-01, forbearance plan
- Fannie Mae Servicing Guide D2-3.2-04, payment deferral
- HUD Handbook 4000.1, Update 18 (August 2026), FHA loss mitigation
- HUD Mortgagee Letter 2025-12, permanent loss mitigation options
- VA: Help to avoid foreclosure
- 7 C.F.R. § 3550.207, USDA direct loan payment moratorium (eCFR)
- Freddie Mac: Options to stay in your home
- Freddie Mac: Payment deferral
- CFPB: What is forbearance?
- VA: Servicer news, partial claim implementation deadline
- 12 C.F.R. § 1015.5, ban on advance fees for mortgage relief (eCFR)
- CFPB: Find a housing counselor
- CFPB: Submit a complaint