My forbearance period is about to end. What options do I have to ensure I can stay in my home?
There are options available to you when you exit forbearance to make up missed payments. Some examples of repayment methods include a repayment plan, deferral or partial claim, modification, and reinstatement (lump sum). The table below highlights these options:
|Post-Forbearance Options||This option might be right for you if...||How it works|
|Repayment Plan||You can afford to pay more than your regular mortgage payment for a few months.||A portion of the amount you owe will be added to the amount you pay each month.|
|Deferral or Partial Claim||You can resume your regular payments but can't afford to increase your payments.||These options will either move your missed payments to the end of your loan or put them into a subordinate lien repayable only when you refinance, sell, or terminate your mortgage.|
|Modification||You can no longer afford to make your regular mortgage payment.||Your payment can be reduced to an affordable amount and your missed payments will be added to your loan balance. Your monthly payments could also be lower but making reduced payments will take longer to pay off your loan.|
|Reinstatement (Lump Sum)||You want to pay back all of your missed payments at once.||A lump sum option is available to you if you have the means to pay all your missed payments at once. For most loans, servicers cannot require you to pay a lump sum. So, if you only hear about a lump sum repayment, ask about other options.|
Source: Consumer Financial Protection Bureau (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
If you have a federally backed mortgage (for example, a mortgage that was purchased by Fannie Mae/Freddie Mac, or is insured/guaranteed by federal agencies), in certain cases, your mortgage servicer is required to offer you payment reduction and loan modification options that can reduce payments by up to 25 percent to help you stay in your home.
The method of repayment can vary depending on your mortgage. Not all borrowers will be eligible for all options, so you should ask your servicer about what options are available to you.Close and return to top
If I don’t qualify for any payment options and I can’t make my mortgage payments, will my home be foreclosed?
First, the American Rescue Plan provides almost $10 billion to help struggling homeowners with financial assistance to help keep them in their homes. This money may be used for mortgage payments, utilities, insurance, and other needs. Please refer to the Treasury’s website (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or check with your state and local agencies to see if you qualify for assistance.
Second, it is important to note that mortgage servicers can’t start the foreclosure process until you are more than 120 days past due on your mortgage payments. However, during the pandemic, there has been a moratorium on foreclosures to help keep people in their homes. This moratorium expired on July 31, 2021.
The CFPB recently issued a final rule that stipulates certain safeguards mortgage servicers must meet before foreclosing to provide homeowners the opportunity and time to avoid foreclosure. These safeguards took effect on August 31, 2021 and terminate on January 1, 2022. While the CFPB’s rule will not block servicers from starting the foreclosure process, it does require servicers to have a higher level of diligence and outreach to ensure every effort was made to work with the borrower before moving on to foreclosure.
Lastly, if you have a federally backed mortgage and once your home is foreclosed, your mortgage servicer can’t evict you due to a moratorium on evictions. However, this moratorium expires on September 30, 2021.Close and return to top
I currently rent and I am behind on my rental payments. What protections do I have from being evicted?
You should first determine if you are eligible for financial assistance. The American Rescue Plan and earlier laws provide significant financial assistance to renters to help them avoid being evicted through the Emergency Rental Assistance Program. You can find rental assistance locations in your state by visiting the Treasury’s website (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .Close and return to top