 TITLE: What Happens When Loan Forbearance Ends? CONTENT: When Mortgage Forbearance Ends\n------------------------------\nMortgage forbearance is a topic many Americans are learning about for the first time, as they seek relief from lenders in the face of coronavirus-related income losses.\nFor many homeowners, mortgage forbearance is an option provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Among its many economic relief provisions, the CARES Act requires lenders and servicers responsible for federally backed mortgages to offer homeowners payment forbearance; these include FHA loans, VA loans, USDA loans and all mortgages owned or securitized by Fannie Mae or Freddie Mac.\nHomeowners with mortgages not backed by the federal government may still qualify for COVID-19 mortgage forbearance under voluntary relief programs put in place by lenders. If your loan falls under this category and you're interested in mortgage forbearance, contact your lender to see what options they're offering.\nMortgage forbearance terms vary, but all require you to eventually make up for the payments that were excused during the forbearance period. While the CARES Act makes special stipulations for certain loans (see below), repayment under normal circumstances is typically handled in one of three ways:\n*   **Reinstatement**: Under reinstatement, you pay a lump sum covering the total amount by which your payments were reduced during forbearance, plus interest and possible fees, at the end of the forbearance period. Upon reinstatement, you resume making regular loan payments in the same amount you paid before forbearance, on the original payment schedule spelled out in your loan agreement.\n*   **Repayment plan**: A repayment plan divides the amount you were excused from paying during the forbearance period into installments and adds them (with interest and possible fees) to your regular monthly mortgage payments. The number of repayment installments is negotiable and can depend in part on your ability to make payments, but it's usually no greater than 12 months. Increasing the number of installments lowers the amount of each payment, but adds to total interest paid over the repayment term.\n*   **Mortgage modification**: A mortgage modification permanently restructures your loan to reduce the monthly payment and make it easier for you to keep up with payments. Under a mortgage modification, any amount you were excused from paying during forbearance is added back into the total you owe and factored into the new payment structure. A mortgage modification can extend the repayment period on your mortgage by a number of months and add significantly to the total amount you'll pay over the remainder of the loan. END