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. The initial forbearance period currently offered for those impacted by COVID-19 is 90 days and can be extended depending on the investor of your loan. The forborne payments will not be forgiven; however, assistance options will be available as outlined here.
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. For more information on these payment deferral options, please click here.