Helping Homeowners
Is What We Do!

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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:

  • Forbearance period extension – in certain cases, additional time may be provided to suspend the required monthly mortgage payment for up to 18 months. 
  • Lump sum payment – for those who are able to reinstate the loan, 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.

Will I be required to make a lump sum payment at the end of my forbearance period?

If you cannot afford to pay the missed payments in a lump sum at the end of forbearance, you will not be required to do so, as long as we reach an alternate solution, which we will specifically call you at the end of your applicable forbearance period to discuss. This could include an extension of the forbearance period, a repayment plan, deferral of the payments to the end of the loan, or a loan modification, depending on the investor guidelines and status of the loan.

What specific options will be available for me at the very end of my forbearance period?

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, Department of Veterans Affairs (VA), the Federal Housing Administration (FHA) and other private companies.

At the conclusion of the forbearance period, one of the following four outcomes must occur:

  1. The account may be paid off in full. If you are able to pay off the loan in full (whether you have obtained refinancing, sold your home, or otherwise), you are always free at any time to pay off the loan balance in full, including any forborne payment amounts.
  2. The mortgage may be brought current through a full repayment/reinstatement. If you are able to resume making normal monthly payments and are also able to pay the missed payments in a lump sum, you may do so at the conclusion of your forbearance period.
  3. The loan may be approved for another workout option. If you are not able to pay the missed payments in a lump sum, we can evaluate you for various workout options, which vary depending on the type of loan you have and your financial situation (including your ability to resume making normal monthly payments). These options may include:
     
    • Repayment Plan – If you are able to resume making normal monthly payments, you may qualify for a repayment plan, which allows you to catch up on the missed payments gradually while paying your normal monthly payment. Repayment plans take the missed payments and spread them out over a number of months, and add them to your existing mortgage payment. During the repayment plan, you pay the regular mortgage payment plus this additional amount each month in order to pay off the full amount owed from the forbearance period by the end of the repayment plan.
    • Loan Modification/Deferral – If you are unable to afford the repayment plan option, we may be able to offer a loan modification or deferral option for qualified borrowers.
      • If you are able to resume making normal monthly payments, some modification/deferral options allow you to keep your monthly payments the same and add the missed payments to the end of the loan.
      • If you are unable to resume making normal monthly payments, some modification options allow you to reduce the amount of the monthly payment.
    Please note that not all borrowers will qualify for all options, as some investors have imposed certain eligibility criteria, which are subject to change.

    Please see below for additional specifics based on your mortgage loan type. If you’re not sure what type of loan you have, click here.
     
    • Fannie Mae Loans: For additional information regarding loan modification and payment deferral options, please consult Fannie Mae’s website.
    • Freddie Mac Loans: For additional information regarding loan modification and payment deferral options, please consult Freddie Mac’s website.
    • FHA Loans: If you are able to resume making monthly mortgage payments and were current or less than 30 days delinquent as of March 1, 2020 you will be reviewed for the COVID-19 Standalone Partial Claim or other COVID-19 loss mitigation options.

      The COVID-19 Standalone Partial Claim modification is a non-interest bearing, junior loan secured by your property. The program will bring the account current and place all forbearance payments to the end of the loan and not due until the payoff, maturity or acceleration of your loan, which includes the sale or refinancing of your property.

      Additional information regarding FHA COVID-19 assistance is available at:
      https://www.hud.gov/coronavirus/homeowners.
    • Private-investor-owned loans (not owned by Fannie Mae, Freddie Mac, FHA, VA): If your loan is eligible, we will notify you if we are able to defer unpaid forborne monthly payments to the end of your loan. You may also be eligible for a repayment plan or modification, depending on the particular investor of your loan and the loan status, which we will discuss with you as the end of your forbearance term nears.
  4. We may refer the loan to foreclosure or resume foreclosure activities in accordance with applicable law. This is a last resort, but if we are unable to reach you and/or you do not engage with us in order to make arrangements to resume making monthly payments and pay any forborne amounts, we will have no choice but to refer the loan to foreclosure or resume pre-existing foreclosure activities, as the case may be.