Forbearance Plan Overview
What is a forbearance plan?
A forbearance plan provides immediate relief to borrowers experiencing a temporary hardship by delaying the required monthly mortgage payments. Offering a forbearance plan allows us to provide assistance quickly by not requiring documents to be submitted for review or additional paperwork to be signed and returned.
What if I don’t need a forbearance plan for the timeframe provided?
You are always free to shorten any forbearance plan term at any time in order to reduce the amount of payments that are being delayed. You are also free to continue to make payments during your forbearance period if you are able to do so.
Why aren’t you just adding the missed payments to the end of the loan like I’ve heard about?
As a mortgage servicer, PHH Mortgage must comply with guidelines set forth by the entity that is the owner or investor of the mortgage. These entities include Fannie Mae, Freddie Mac, the Department of Veterans Affairs (VA), the Federal Housing Administration (FHA) and other private companies. Some, but not all, investors permit the deferral of payments.
What happens at the end of forbearance?
Before the forbearance plan expires, we will contact you to discuss your current status and determine what options may be available given your situation, which may include:
- Lump sum payment – for those who can reinstate the account, pay the full amount owed from the forbearance period. Please keep in mind that paying what you can during the forbearance period will help offset this amount.
- Repayment plan – over a number of months, pay the regular mortgage payment plus an additional amount in order to pay off the full amount owed from the forbearance period.
- Loan modification/deferral – if you are unable to pay the lump sum or enter a repayment plan, we may be able to offer a loan modification or deferral of the payments to the end of the loan term for qualified borrowers.
We are here to help. PHH is The Leader in Loss Mitigation®. Our specialists will review your situation and determine the best available assistance option for you.