A forbearance is an agreement between you and your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specific period (usually between 90-180 days) of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.
With a military forbearance, you may qualify for additional benefits such as a longer forbearance period—up to 6 months—and no adverse impact to your credit score (all credit reporting related to your mortgage loan will be suspended during the forbearance period). Additionally, a special hotline has been set up for additional guidance about this option and other mortgage assistance programs—877-MIL-4566.
Military Forbearance may be an option if:
- You are ineligible or do not want to refinance
- You are facing a financial hardship due to either an injury or loss of spouse in active duty
- You are several months behind on your mortgage payments
What are the benefits?
- Lower or temporarily suspend your monthly payment for up to 6 months—giving you time to improve your financial situation and get back on your feet
- No adverse credit reporting (related to your mortgage loan) during the forbearance period
- Stay in your home and avoid foreclosure
How does it work?Forbearance reduces your monthly mortgage payment—or suspends it completely—during the forbearance period (usually between 90-180 days). If you qualify for forbearance, you and your mortgage company will sign an agreement that will outline the forbearance terms:
- length of forbearance period,
- reduced payment amount (if the payment is not suspended), and
- the terms of repayment.
If you are still struggling with your mortgage payments after the forbearance period is over, you may be able to qualify for a modification that would permanently change the terms of your mortgage.
|Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:|
|Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment and if this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.|
|Contact the Fannie Mae Military Support Hotline—Call 877-MIL-4566 (877-645-4566) and tell them you are interested in a Military Forbearance.|