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Options after a forbearance plan or resolved hardship

Options after a forbearance plan or resolved hardship

Use this resource to support your conversations with homeowners about options after a forbearance plan or otherwise resolving a hardship.

What options are available after a mortgage forbearance plan?

Homeowners with a resolved hardship (including those who are exiting a forbearance plan) have options to bring their loan current. Servicers should discuss options with homeowners and determine eligibility.

What if a borrower exits forbearance but has not resolved their hardship?

Some borrowers may find themselves unable to resume or continue paying their monthly payment after a forbearance plan has ended. The borrower must contact the servicer to see if they are eligible to extend the forbearance plan.

Options after a forbearance plan include:


The homeowner pays back any missed amounts at once if financially able to do so. After the reinstatement, the homeowner continues to pay their mortgage under the original terms of their mortgage loan.
Guidance: Servicing Guide F-2-11, Fannie Mae’s Workout Hierarchy

Repayment plan

Homeowner resumes making their regular monthly payments, plus an additional portion of the missed amount each month, until the missed amount is paid off.
Guidance: Servicing Guide D2-3.2-02: Repayment Plan

Payment deferral

Homeowner resumes making regular monthly payments. This workout solution defers the missed amount (which may include servicing advances paid to third parties such as taxes and/or insurance premiums) to the maturity date as a non-interest bearing balance. The deferred amount is due on the maturity date (or earlier whenever the home is sold, or the loan is refinanced or otherwise paid off).
Guidance: Servicing Guide D2-3.2-05 Payment Deferral
Guidance: Servicing Guide D2.3.2-06 Disaster Payment Deferral

Loan Modification

Homeowner has experienced a permanent impact to their ability to pay their regular monthly mortgage payment. After the homeowner completes a trial period plan, all eligible unpaid amounts are added to the unpaid principal balance, and monthly principal and interest mortgage payments are permanently modified to what may be a lower amount after applying a series of steps that may include rate reduction and a term extension to 40 years (480 payments) from the effective date of the modification, and principal forbearance.
Guidance: Servicing Guide D2-3.2-07: Fannie Mae Flex Modification


When a borrower exits forbearance and enters a loss mitigation plan, the borrower may be eligible for a new mortgage loan after successfully demonstrating the ability to make their payments on time. Review the Fannie Mae Selling Guide for eligibility requirements.
Guidance: Selling Guide B3-5.3-03: Previous Mortgage Payment History
Guidance: Selling Guide B3-5.3-09, DU Credit Report Analysis