Mortgage forbearance and mortgage deferment are two ways to handle missed payments during a hardship. Forbearance temporarily reduces or pauses your payments. Deferment, usually called payment deferral, moves eligible past-due amounts to a later date.
Say you lose your job and can't pay for three months. Your servicer approves forbearance while you recover. Once you can pay again, a payment deferral resolves the missed amounts without an immediate payback. Neither option forgives debt.
Mortgage Forbearance and Deferment Basics
| Feature |
Mortgage Forbearance |
Mortgage Payment Deferral |
| Purpose |
Temporary payment relief |
Resolve eligible arrears by postponing repayment |
| When Used |
During hardship |
After the borrower can resume regular payments |
| Monthly Payment |
Reduced or suspended temporarily |
Regular principal and interest resumes |
| Missed Amounts |
Remain owed |
Eligible amounts set aside for later repayment |
| Interest |
Depends on loan and agreement |
Fannie Mae and Freddie Mac deferrals create non-interest-bearing deferred balances |
| Repayment |
Depends on subsequent workout |
Due at maturity or earlier sale, refinance or payoff |
| Eligibility |
Hardship and program dependent |
Program, delinquency and ability-to-resume dependent |
| Credit Impact |
Depends on account history and reporting |
Earlier delinquencies may remain reported |
Servicers say "payment deferral" rather than "deferment." Here, both mean an approved postponement of missed mortgage amounts.
What Is Mortgage Forbearance?
Mortgage forbearance is an agreement with your servicer to temporarily reduce or suspend payments because of a hardship, such as job loss, illness or a disaster. It isn't forgiveness. The CFPB's definition of mortgage forbearance notes that you still owe every skipped payment.
How Does Mortgage Forbearance Work?
Suppose your payment is $2,000 a month and your servicer suspends it for three months.
| Month |
Regular Payment |
Required During Forbearance |
| Month 1 |
$2,000 |
$0 |
| Month 2 |
$2,000 |
$0 |
| Month 3 |
$2,000 |
$0 |
| Total |
$6,000 |
$0 |
You still need to resolve the $6,000 afterward.
How Long Does Forbearance Last?
It depends on the program. Fannie Mae approves forbearance in increments of up to three months, capped at 12 months total, with special rules after disasters. COVID-19-era terms have ended.
Does Interest Continue During Forbearance?
Yes. Forbearance doesn't make your loan interest-free, and your principal stops shrinking while payments are paused. See how principal and interest split.
What Is Mortgage Payment Deferral?
Payment deferral postpones repayment of eligible past-due amounts. It's for homeowners who can afford the regular payment again but can't pay the arrears.
For a Fannie Mae loan, the hardship must be resolved and the loan 2 to 6 months delinquent. The servicer defers up to 6 months of past-due principal and interest, with a 12-month lifetime cap. See Fannie Mae's payment deferral servicing guidelines.
How Does a Deferral Work?
Suppose your $2,000 payment includes $1,600 in principal and interest and $400 in escrow. You miss three payments. That's $6,000 missed, and $4,800 of it is principal and interest.
Escrow and servicing advances paid because of the delinquency can also be deferred. An escrow shortage found at the time of deferral is not included; you repay it through your monthly payment.
Are Missed Payments Added to the End of the Loan?
Effectively, yes. Fannie Mae and Freddie Mac hold them as a separate balance due at maturity or on sale, refinance or payoff. The maturity date doesn't change: a loan due in 2045 still matures in 2045.
Does Mortgage Deferral Charge Interest?
No. The Fannie Mae and Freddie Mac deferred balance is non-interest-bearing, while the rest of the loan accrues interest as usual. Freddie Mac's mortgage payment options compare deferral, forbearance and modification.
Forbearance vs. Deferment: Which Is Better?
Forbearance is for when you can't pay now. Deferral is for when you can pay again but need to handle what you missed.
When Forbearance May Be Appropriate
It fits a temporary income loss, illness or disaster, such as someone expecting to return to work in two months.
When Deferral May Be Appropriate
It fits someone who can afford the normal payment but not a repayment plan's higher one.
What if the Regular Mortgage Payment Is Still Unaffordable?
Deferral doesn't lower your payment. After a permanent income drop, you need a loan modification or other option. See loan modification vs. refinance.
How to Request Mortgage Forbearance
1. Identify Your Mortgage Servicer
Call the company that collects your payment, which may not be your original lender. See mortgagee vs. mortgagor explained.
2. Explain Your Financial Hardship
Say what changed, when, and when you expect to resume payments. Expect to send documents.
3. Confirm the Arrangement
Get the dates, payment terms and treatment of interest, fees, escrow and reporting in writing. Simply stopping payments isn't approved forbearance.
4. Review Your Statements
Check your balance and escrow monthly. Your servicer keeps paying taxes and insurance, which can create a shortage.
5. Prepare for the End of Forbearance
Before it ends, ask which repayment options fit your finances.
What Happens When Forbearance Ends?
You must resolve the arrears through one of these options.
| Option |
How It Works |
Payment Impact |
| Reinstatement |
Pay arrears in one amount |
Immediate cash required |
| Repayment Plan |
Pay extra alongside regular installments |
Temporary monthly increase |
| Payment Deferral |
Set eligible arrears aside |
Regular principal and interest resumes |
| Partial Claim |
Some programs create separate subordinate lien for eligible arrears |
Delayed repayment of separate balance |
| Modification |
Change the mortgage's terms |
May alter required payment or total interest |
Lump-Sum Reinstatement
You can pay everything at once, but Fannie Mae and Freddie Mac don't require a lump sum.
Repayment Plan
Repaying $6,000 over 12 months adds $500 a month, so a $2,000 payment becomes $2,500. Freddie Mac plans last up to 12 months.
Payment Deferral
Arrears are set aside and your regular principal and interest resumes. Escrow changes can still raise the total.
FHA Partial Claim
The Federal Housing Administration (FHA) partial claim places past-due amounts in an interest-free subordinate lien. You repay it at payoff, sale, title transfer, assumption or certain refinances. See HUD's FHA loss mitigation information.
Loan Modification
A modification permanently changes your rate, term or balance. A longer term lowers the payment but raises total interest.
Can You Get Relief on FHA, VA and USDA Mortgages?
Yes, under each program's own rules.
FHA Forbearance and Partial Claims
FHA offers forbearance, repayment plans, partial claims, modifications, a combined modification and partial claim, and a Payment Supplement that lowers your payment for three years. You get one permanent option per 24 months, except after a declared major disaster.
VA Forbearance and Repayment Options
The Department of Veterans Affairs (VA) offers special forbearance, repayment plans and 30- and 40-year modifications. Special forbearance doesn't add missed payments to the end of the loan.
The new VA partial claim pays your arrears; you repay the VA at sale or payoff after a 3-month trial plan. Servicers have until November 28, 2026, to offer it. See the VA's mortgage payment assistance guidance.
USDA Forbearance and Loss Mitigation
The U.S. Department of Agriculture (USDA) direct and guaranteed loans follow different servicing rules. Ask your servicer which apply.
Fannie Mae and Freddie Mac Deferral
Conventional loans backed by Fannie Mae or Freddie Mac qualify for a non-interest-bearing deferral. The hardship must be resolved, the loan 2 to 6 months behind and the full payment affordable again. If you can't, ask about a modification.
Does Mortgage Forbearance Affect Your Credit?
It depends on your account history and how the servicer reports the arrangement. Approved forbearance isn't treated like skipping payments. But late payments reported earlier stay on your credit report. If you were 60 days late beforehand, that remains.
Does Forbearance Count as a Late Payment?
Not automatically. Skipping payments without an agreement does.
Does Mortgage Deferral Hurt Your Credit?
It brings the loan current but doesn't erase earlier late payments. Dispute any reporting errors.
Can You Refinance After Forbearance?
Yes, once you qualify under the new program's payment-history rules. Waiting periods vary by loan type.
Can You Refinance While in Forbearance?
It's hard, because the lender must show you can afford the new payment. Eligibility comes down to the specific refinance program.
What Happens to Deferred Payments When You Refinance?
The deferred balance comes due. A $240,000 balance plus $6,000 deferred means a $246,000 payoff. FHA partial claims come due on certain refinances too. Compare a mortgage recast vs. refinance.
Does Forbearance Stop Foreclosure?
It protects you during the relief period only. Federal rules bar a first foreclosure filing until a loan is more than 120 days delinquent, with limited exceptions. They also add protections while a complete loss mitigation application is under review. See Regulation X Section 1024.41.
What If You Still Can't Pay After Forbearance Ends?
Ask about a modification. Otherwise, consider a sale, short sale or deed in lieu.
Can You Sell Your Home During Forbearance?
Yes. A $250,000 balance plus $8,000 deferred means a $258,000 payoff. A short sale needs lender approval.
What Happens to Escrow During Forbearance?
Your servicer keeps paying taxes and insurance from your escrow account. Paused contributions can cause a shortage.
Can Escrow Shortages Increase Your Payment?
Yes. Your PITI mortgage payment can rise even when principal and interest don't. See escrow shortages and escrow analysis.
Do You Still Owe HOA Fees During Forbearance?
Yes. Forbearance doesn't pause HOA or condo dues.
What Should You Review Before Accepting Mortgage Relief?
- Whether the hardship is temporary or ongoing.
- How much of the payment is reduced or suspended.
- The start and end dates.
- Treatment of interest, late fees and escrow.
- The amount of missed payments to resolve.
- Available repayment, deferral, partial claim or modification options.
- The amount and payoff date of any separate deferred balance.
- The effect of sale, refinance or payoff.
- Potential credit reporting changes.
- Conditions for future mortgage applications.
Free help is available. The CFPB maintains a housing counselor search tool.
The Bottom Line
Forbearance pauses payments during a hardship. Payment deferral moves the missed amounts to an interest-free balance due later. Neither forgives debt, so check escrow, credit and payoff terms first.
Frequently Asked Questions
What Is Mortgage Forbearance?
A temporary, approved pause or reduction of mortgage payments.
What Is Mortgage Deferment?
A payment deferral that postpones missed amounts until sale, refinance or maturity.
How Are Forbearance and Deferment Different?
Forbearance relieves current payments. Deferment handles missed ones afterward.
Is Forbearance the Same as Deferral?
No. One doesn't guarantee the other.
Do You Have to Repay Forbearance?
Yes, through an approved option.
Do You Have to Repay Forbearance in One Lump Sum?
No. Repayment plans, deferrals, partial claims and modifications are alternatives.
Does Forbearance Hurt Your Credit?
It depends on your account history and how the arrangement is reported. Delinquencies reported before it began remain.
Does Payment Deferral Hurt Your Credit?
No, but it doesn't erase earlier late payments.
Does Interest Accrue During Forbearance?
Yes. Forbearance doesn't make the original mortgage interest-free.
How Long Can Forbearance Last?
It varies by program. Fannie Mae caps it at 12 months total, approved up to three months at a time.
Can You Get Forbearance Twice?
Often, for a new hardship, within program limits.
Can You Refinance After Forbearance?
Yes, once you meet the new program's rules.
Can You Refinance With a Deferred Balance?
Yes, but the deferred amount comes due and must be included in the payoff.
Does Deferral Increase Monthly Payments?
Not principal and interest. Escrow can rise.
Is Mortgage Deferral Interest-Free?
The Fannie Mae and Freddie Mac deferred balance is.
Does FHA Offer Payment Deferral?
Not by name. Its partial claim moves arrears into a separate interest-free subordinate lien, which works similarly.
Can You Sell During Forbearance?
Yes, if the sale pays off the loan.
What if You Still Can't Pay After Forbearance?
Ask about modification or a short sale.
Does Forbearance Stop Foreclosure?
It protects you during the approved period but doesn't remove foreclosure risk for good.
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