Can’t Make Your Mortgage Payments? Here’s What I Would Do

Life has a way of throwing curveballs, and when things get tough, keeping up with your mortgage payments can become a serious challenge. If you or someone you know is in this situation, don’t panic—there are options that can provide temporary relief. Share this post with someone who might benefit from this information!

Let’s explore two key solutions: Mortgage Forbearance and Mortgage Deferment. Understanding these options can help you regain control of your financial situation.

✅ Mortgage Forbearance

What is it?
Mortgage forbearance is a temporary pause or reduction in your mortgage payments.
How does it work?
Your mortgage payments are paused for a set period. However, you’ll need to repay them later, often with accrued interest. Forbearance is a great option if you’re facing a short-term financial hardship like job loss, medical bills, or unexpected expenses.

✅ Mortgage Deferment

What is it?
Mortgage deferment allows you to postpone overdue payments.
How does it work?
Missed payments are moved to the end of your loan. This means you won’t need to pay them immediately, but rather when you pay off your mortgage, refinance, or sell your home. Deferment often comes into play after forbearance to help you catch up on missed payments.

Key Differences:

Forbearance: Pauses your payments but adds interest. You may have to extend the term of your loan to repay what you owe.
Deferment: Moves missed payments to the end of your loan without adding extra interest during the pause.
When Should You Consider Them?

Forbearance is useful if you need immediate, temporary relief from making payments due to a hardship that you expect to overcome within a few months.
Deferment comes into play after forbearance if you need more time to catch up on payments without the immediate pressure of making up missed payments.
What You Should Do Next:

Talk to Your Mortgage Servicer: It’s essential to communicate with your mortgage servicer to discuss these options and determine which is best for your situation.
Keep Records: Always document your agreements, including any changes to your payment terms, so there’s no confusion later.

Life happens, and missing a payment doesn’t mean the end of the road. There are resources available to help you through financial rough patches. Remember, whether you opt for forbearance or deferment, the goal is to stay in control and plan for the future.