What happens at the end of the initial
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
- 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.
If you are on a forbearance plan and are now ready to resume
making monthly mortgage payments, click here.
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:
- 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
- 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
- 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:
Please note that not all borrowers will qualify for all
options, as some investors have imposed certain eligibility
criteria, which are subject to change.
- 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 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 at:
- Freddie Mac Loans: For additional information
regarding loan modification and payment deferral options,
please consult Freddie Mac’s website at:
- FHA Loans: If you are able to resume making
on-time monthly mortgage payments, you will be evaluated for a
COVID-19 National Emergency Standalone Partial Claim,
as long as your account was current or less than 30 days past
due as of March 1, 2020 and the property securing the loan is
owner-occupied. The COVID-19 National Emergency Standalone
Partial Claim is a no-interest, junior loan secured by your
property. No payments are due on this junior loan until the
payoff, maturity or acceleration of your insured mortgage,
including for the sale of your Property or a refinancing, or
the termination of FHA insurance on your mortgage.
For additional information regarding FHA loans, FHA has
prepared an FAQ document, available at:
- 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
- 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.