Mortgage forbearance: What is it and how does it work?

Mortgage forbearance is a temporary relief option for homeowners facing financial hardship due to job loss, illness, or other issues. It allows borrowers to pause or lower their mortgage payments, and can help protect struggling borrowers from becoming delinquent on payments or facing foreclosure. Eligibility and application requirements vary by lender, and it is important to keep a record of all communications. Mortgage forbearance does not show up on credit reports as a negative activity, and borrowers will be reported as current on their loan even if payments are not being made.