Know Your Options if Your Home Loan Payment Suspension is Ending

Is the COVID-19-related payment suspension, known as forbearance, on your home loan ending? Are you ready to resume making mortgage payments? Understanding your options and being proactive can help ensure a smooth process, say experts.

“Loan servicers are currently reaching out to customers through emails, letters, and calls to help them with exiting forbearance. Responding to this outreach promptly is crucial,” says Rulon Washington of Wells Fargo.

The common questions homeowners have when exiting their forbearance:

Can I move missed payments to the end of the loan term?

In most cases, if you were current on your mortgage or home equity payments when the suspension started and are ready to resume your regular monthly payments, you may be able to move missed payments to the end of the existing loan term. This additional balance won’t accrue interest and will be due when the loan is paid in full, refinanced, or when the home is sold.

What other options are available?

You may have the option to pay off missed payments in full or follow a repayment plan, which divides what’s due into manageable amounts and adds it to the regular monthly payment.

What if I need help with a lower monthly payment?

If you need a reduced payment, you may qualify for a loan modification.

What if I can’t afford reduced payments and need to sell?

Your loan servicer can work with you as you attempt to sell your home, and in many cases, enable you to take advantage of the strong increases in U.S. home prices.

Who controls how my loan is handled?

Many loans are insured, guaranteed, or owned by third-party “investors” who set the rules for how loans are managed. Investors include government-sponsored enterprises, government agencies, such as FHA, VA or USDA, banks, and private companies.

Will my home be foreclosed if I stay in forbearance or can’t resume payments?

Servicers will not move to foreclosure or eviction on anyone who remains in an active, approved payment suspension plan.

What if I’m exiting a COVID-related forbearance but have been impacted by a natural disaster?

Contact your loan servicer for options during this difficult time.

No-cost housing counseling agencies approved by the U.S. Department of Housing and Urban Development can help assess your situation, navigate available programs and even work with your servicer on your behalf. To find an approved agency, call HUD toll-free at 1-800-569-4287 or visit


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