There’s a lot in the news right now about potential actions that might impact mortgage payments, including forbearance. Forbearance typically means delaying mortgage payments for a certain period of time. Forbearance does not mean your payments are forgiven.
You are still required to eventually fully repay your forbearance, but you won’t have to repay it all at once — unless you are able to do so.
No late fees or credit delinquencies occur while your mortgage payments are in forbearance. There is also no additional interest accruing during a forbearance.
Yes, you can make partial payments if you are able. Making partial payments cuts down on how much you owe when the forbearance ends, but you are not required to make any payments during a forbearance period.
Homeowners unable to make up all of their past-due payments when forbearance ends will need to make arrangements to repay them, likely through a repayment plan or a loan modification. There are benefits and drawbacks with each of those options.
Repayment plans and loan modifications can result in changes to your mortgage payments.
With a repayment plan, homeowners return to making their regular mortgage payment with a portion of their missed payments added in for a set number of months (usually two to six).
Loan modifications are basically new loans with your past-due payments rolled in. Because it’s a new loan, your interest rate might also change based on current market rates at the time of the modification.
You will want to stop or pause automatic mortgage payments if you set them up through your bank or another third-party service. Our Servicing team will stop automatic payments set up directly with us. Additionally, keep your forbearance documentation in a secure place, and monitor your monthly mortgage statement.
Yes, you can stop a forbearance and resume making regular mortgage payments if your income is restored. This isn’t a requirement, but if you’re able to resume making payments, doing so will cut down on what you’ll owe in the end.
We are not able to refinance homeowners in a forbearance.
We will not initiate foreclosure proceedings or move forward with a foreclosure sale during a forbearance period. If any foreclosure action or proceedings were pending, a forbearance puts them on hold. Once the forbearance period ends, foreclosure actions can proceed unless homeowners make arrangements to repay the missed payments.
For more information on payment assistance options and how to apply, call toll free: 833-919-1174 or call our local number at 573-507-9705. Homeowners with government-backed mortgages can also reference this fact sheet or the Consumer Financial Protection Bureau's coronavirus resources to learn more about forbearance and repayment options.
Mortgage assistance programs for homeowners affected by COVID-19 may also be available in your area. Visit the National Council of State Housing Agencies website to learn more.