Forbearance
A temporary pause or reduction in mortgage payments for a borrower going through hardship. The missed amount usually gets added back later, either in a lump sum or spread out.
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Free to set up. No credit card.Part 1 of 4
Why a seller cares
A forbearance pauses payments during a hardship and adds them back later. If you sell during or after one, the paused amount is in the payoff, which surprises sellers who thought it had been forgiven.
Part 2 of 4
A simple example
You took six months of forbearance at $1,500 a month. At closing the payoff includes the $9,000 that was paused, plus the regular balance.
| What happens after the forbearance | What it does to the payoff |
|---|---|
| Selling while the $9,000 is deferred | The full amount is in the payoff |
| A lump-sum repayment made earlier | Nothing extra; it was already paid |
| The amount moved to the end of the loan | Still owed; it appears at sale or at the end |
Forbearance is a delay, not a discount. The payoff collects it.
Part 3 of 4
What people get wrong
That forbearance forgives the payments. It defers them, and the payoff letter is where they come back.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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