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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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
In your Room, this word explains itself where it appears.
Your Room defines forbearance in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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