A global pandemic has put all of us into a state of unknown. For many of you, you're unsure where your next paycheck is coming from or if you'll be able to afford next month's bills. If you are struggling with making ends meet then forbearance may be a good option for you.

What is forbearance, and why does it matter?

Forbearance is when your payments--in this case mortgage payments--are suspended or the monthly amount is decreased for a defined period of time while you become financially stable again.

Urban Institute conducted a study finding 

"Approximately 400,000 homeowners who became delinquent after the pandemic began have forgone forbearance and become delinquent. These borrowers may not know they are eligible for forbearance."

In fact, the CARES Act allows nearly all homeowners the right to pause making mortgage payments.

It's important to remember that forbearance doesn't mean your mortgage payments are erased. You will simply make those repayments at a later date, and servicers can't require you to make your skipped payments in one lump sum after payments resume.

If you think taking an established break on monthly mortgage payments is right for you, take action now.

Here are 5 steps to take if you want to apply for a forbearance on your home mortgage:

1. Find the contact information for your servicer

Look for the phone number or email of your servicer (the company you send your mortgage payment to every month) on your mortgage statement to avoid potential scams you could encounter looking for it online. 

2. Contact your mortgage servicer

Explain your situation so your servicer can determine your best course of action. Be sure to ask any questions you have about the forbearance process.

3. Ask if you're eligible for a forbearance under the CARES Act

The CARES Act protects homeowners with federally backed loans (FHA, VA, USDA, Fannie Mae, and Freddie Mac). In addition, some private servicers are also providing forbearance programs.

4. Ask what happens when your forbearance period ends

Depending on the plan available to you, there are different options you may be able to consider. Your servicer will explain what's available.

Other questions you may want to consider asking are:

• • What happens to the payments I miss?

• • What are my repayment options?

• • When will repayment be due?

• • Are there any fees?

5. Ask your servicer to provide the agreement in writing

A written agreement provides you with a record of what type of program you're agreeing to based on your conversation with your servicer.

Remember this… 

Forbearance isn't automatic if you have a home mortgage. Take action now, and request assistance while this benefit is still available to you. Reach out to your mortgage provider today so you can get the assistance you need to protect the hard-earned investment you've made in your home.

Looking for other resources to help you during this pandemic?

Mortgage relief options

Learn about mortgage and housing assistance options

Protect your finances

Know the steps to take

Student loans

Federally-held student loan payments are postponed and interest has been waived under the CARES Act.

Learn what that means for your loans

Protect your credit

Learn how to manage and protect your credit

Interested in reading more how-to articles? Access them here.