Let’s do some ‘mortgage forbearance math’


Mom and Dad have a mortgage.

It’s currently $1,500 per month.

Dad gets laid off, calls the servicer, and asks for forbearance.

In one phone call, he gets 6 months “off” from paying.

Seven months later, Dad is finally back to work, and hasn’t been able to save any money during the forbearance.

Forbearance is lifted and servicer says,”That will be $9,000 + $1,500, which is now due”. ($10,500)

Dad almost passes out and says, “WHY??

“Servicer: “That’s the 6 months of forbearance plus the current month.”

Dad: “I can’t do that, can we work something out?

“Servicer: “Sure, we will spread out the $9,000 over 12 months.

“Dad: “Phew….ok, good. What will that look like?

“Servicer: That will be $2250 a month for the next 12 months.

“Dad: ” OMG!!! I can’t afford that.

“Servicer: “Sorry…..”

Dad: “Can I refinance?”

Servicer: “No because the loan went into forebearance.”

Dad: “What can I do?”


In a nutshell, this is forbearance, folks. Forbearance is not forgiveness. We need to keep putting this message out there, because it is a problem. Please understand the seriousness of this, and if you still have questions, I can connect you with a professional to talk about your options.

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