## When is Mortgage Forbearance Ending?
**What is Mortgage Forbearance?**
Mortgage forbearance is a temporary pause in or reduction of mortgage payments for a specified period. It is typically granted to homeowners facing financial hardship, such as job loss or medical expenses. During forbearance, the homeowner is not required to make mortgage payments, but the missed payments will be added to the loan balance and must be repaid at the end of the forbearance period.
**Federal Forbearance Programs**
- CARES Act Forbearance: This forbearance program was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and allowed homeowners with federally backed mortgages (FHA, VA, USDA, Fannie Mae, and Freddie Mac) to request a 180-day forbearance period, which could be extended for an additional 180 days.
- Temporary Assistance for Homeowners (TAH): This program provides temporary financial assistance to homeowners with FHA-insured mortgages who are experiencing financial hardship. TAH can cover up to $4,000 in mortgage payments over a 36-month period.
- Federal Housing Administration (FHA): FHA offers forbearance options to homeowners with FHA-insured mortgages. Borrowers can request a forbearance period of up to 12 months, and in some cases, it may be extended for an additional 12 months.
**Private Mortgage Forbearance**
In addition to federal forbearance programs, private mortgage lenders may also offer forbearance options to borrowers. The terms and conditions of private forbearance agreements can vary widely depending on the lender.
**When is Mortgage Forbearance Ending?**
**CARES Act Forbearance:**
* The initial 180-day forbearance period under the CARES Act ended on September 30, 2020, but homeowners could request an extension for an additional 180 days.
* The extended 180-day forbearance period expired on March 31, 2021.
**Federal Housing Administration (FHA):**
* For FHA-insured mortgages, the maximum forbearance period is 12 months, which may be extended for an additional 12 months.
**Private Mortgage Forbearance:**
* Private mortgage forbearance periods vary depending on the lender’s policies.
**What Happens After Forbearance Ends?**
After the forbearance period ends, homeowners will have several options for resuming mortgage payments:
* Repayment Plan: The lender will calculate a repayment plan that outlines how the missed payments will be added to the loan balance and repaid over a certain period.
* Loan Modification: The lender may offer to modify the terms of the loan, such as reducing the interest rate, extending the loan term, or adding the missed payments to the end of the loan.
* Foreclosure: If the homeowner cannot repay the missed payments, the lender may initiate foreclosure proceedings.
**Important Considerations**
* **Missed Payments Impact Credit Score:** Missed mortgage payments will negatively impact the homeowner’s credit score.
* **Interest Accrues During Forbearance:** Interest continues to accrue on the mortgage balance during forbearance, even if payments are not being made.
* **Fees and Penalties:** Some lenders may charge late fees or penalties for missed payments during forbearance.
* **Contact Lender Before Forbearance Ends:** Homeowners should contact their lender before the forbearance period ends to discuss their options and prevent foreclosure.
**Conclusion**
Mortgage forbearance provides temporary relief for homeowners facing financial hardship. It is important to understand the terms and conditions of the forbearance program, as well as the potential consequences of missed payments. Homeowners should contact their lender before the forbearance period ends to explore their options and avoid foreclosure.