Life can be unpredictable. Whether it’s a sudden job change, unexpected medical expenses, or another event that affects your finances, you may find yourself struggling to keep up with your mortgage payments.

That’s where mortgage forbearance can come in—a temporary solution that gives you some breathing room when you need it most.

What is mortgage forbearance?

Mortgage forbearance is a short-term agreement with your lender that allows you to reduce or pause your monthly payments for a set length of time. It’s designed to help homeowners who are experiencing a financial hardship, such as due to a natural disaster or serious illness. With the burden of their home loan being lightened for a little while, they gain a grace period to help them get back on track.

It’s important to note that forbearance doesn’t waive your payments but simply postpones them. You will still be responsible for repaying the missed amount later on, but how and when you do that depends on the plan you work out with your lender.

How does it work?

When you enter a forbearance plan, your lender agrees to one of the following:

• Pause your payments entirely.
• Lower your monthly payments for a specified period (usually between three and six months, but it can potentially go up to twelve).

Once the forbearance period ends, you’ll work with your lender to determine how to handle the payments you deferred. Common options include:

• Making up the payments over time by temporarily increasing your monthly amount
• Adding the missed payments to the end of your loan
• Paying the full amount at once, although this is rarely required

When to consider it

Forbearance isn’t just for extreme emergencies—it’s a helpful tool during any temporary financial setback. You might consider it if:

• You’ve experienced a sudden loss of income or a reduction in hours.
• You’re facing high medical bills or caregiving responsibilities.
• You need a few months to catch up financially due to unexpected expenses.

It’s a way to stay in your home and avoid falling behind while you get back on more solid financial footing.

Will it affect your credit?

Though your lender may decide not to do so, forbearances are usually reported to credit bureaus, so it may have an effect on your credit score. However, it may be minimal since your loan will remain in good standing due to the agreement between you and your lender. As long as the plan was approved and payments are made accordingly following the end of forbearance, you likely won’t see too big a hit. Plus, this approach can help you avoid foreclosure, which would have a much greater negative impact.

The keys to protecting your credit, though, are speaking with your lender sooner rather than later about your financial struggles—ideally, before you miss a payment—and being clear about the details. Good communication and written documentation can help you avoid any surprises.

Steps to take 

If you think forbearance might be right for you, follow these basic steps:

1. Reach out to your lender. They can explain your options and help you apply.
2. Ask questions. You’ll want to make sure that you understand how forbearance works, how long it will last, and what your repayment plan may be.
3. Stay in the loop. Remain in contact with your lender during the forbearance period, and keep an eye on deadlines and next steps.

The bottom line

Mortgage forbearance can be a helpful option when you’re going through a tough time financially. It’s not about avoiding responsibility—it’s about having the time and space to regroup without putting your home at risk. With the right plan and support, it’s possible to get through a challenging season and continue building toward your long-term goals as a homeowner.