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Here’s What Really Happens After a Forbearance

After a forbearance, homeowners will need to repay the payments they missed. Depending on a homeowner’s situation and the guidelines defined by the owner of their loan, they may have different solutions available to help with repayment. One solution may be moving some or all of the amount owed to the end of their loan, sometimes called a deferral. Other solutions may include:

Reinstatement: If a homeowner is able, paying back the amount they owe all at once is definitely the simplest option. It’s not for everybody but it’s on the table. This is called a reinstatement. You may have also heard it referred to as “paying a lump sum.”

Repayment plan: With this solution, a servicer simply tacks on an extra amount to the regular monthly payment until the amount owed is paid back. This usually happens over 3 to 6 months but could vary depending on the homeowner’s circumstances.

Loan Modification: At the end of a forbearance, a servicer may adjust the terms of a homeowner’s mortgage to bring the account current. There are several ways to do this. We may be able to lower your interest rate or maybe extend the loan’s term length so that each month’s payment is a little lower.

What to do next

If you’re a Mr. Cooper customer and you’ve entered into a forbearance, check your online account 30 days before the end of your plan. Tell us if you are ready to resume your payments and we’ll be able to provide possible solutions. 

Rest assured that we will explore every solution available.