Mortgage Forbearance in Florida: Pause Payments, Plan Your Next Move

Mortgage forbearance gives Florida homeowners breathing room — a temporary pause or reduction in mortgage payments while you recover from a financial hardship. It does not eliminate what you owe. It does not permanently change your loan. What it does is stop the bleeding so you can stabilize, evaluate your options, and make a rational decision about your next move without a foreclosure sale date looming over you.

This guide covers how forbearance works in Florida, the differences between FHA, VA, and conventional forbearance programs, what happens when forbearance ends (including repayment options most homeowners do not know about), how forbearance affects your credit, and when forbearance is — or is not — the right strategy.

How Does Mortgage Forbearance Work?

A forbearance agreement is a written agreement between you and your loan servicer. The servicer agrees to one of two arrangements for a defined period:

• Full suspension: You make no mortgage payments for the forbearance period. The entire amount is deferred. This is the most common type for severe hardships like job loss or major medical events.
• Reduced payments: You make a lower payment — often 25% to 75% of your normal amount. The difference between your reduced payment and the full amount is deferred. This works for partial income loss situations.

During forbearance, the servicer agrees not to initiate or advance foreclosure. If a foreclosure lawsuit has already been filed, the case is placed on hold. Interest continues to accrue on the loan during forbearance — the deferred payments are not interest-free (unless your loan type provides otherwise).

Critical point: Forbearance is temporary. It buys time — typically 3 to 12 months — but the deferred payments must be resolved at the end of the period. The exit strategy is just as important as the forbearance itself.

Forbearance Options by Loan Type

Your forbearance options depend heavily on who owns or insures your mortgage. Here is what each loan type offers:

FHA Loans (Federal Housing Administration)

FHA loans are serviced by private companies but insured by HUD. FHA borrowers have access to structured forbearance options:

• Informal forbearance: Up to 6 months. The servicer agrees to accept reduced or no payments. No formal HUD paperwork required. The servicer arranges repayment at the end.
• Formal forbearance (Special Forbearance): A written agreement specifying the reduced payment amount, duration, and repayment terms. Can extend up to 12 months in some cases.
• Exit options: FHA borrowers have access to partial claims (HUD pays the arrearage as a subordinate lien) and FHA loan modifications — both of which can resolve the deferred balance without increasing monthly payments.

VA Loans (Department of Veterans Affairs)

VA loans carry strong borrower protections, and VA servicers are required to make reasonable efforts to help veterans avoid foreclosure:

• Initial forbearance: Up to 6 months of reduced or suspended payments.
• Extension: An additional 6 months may be granted if the hardship continues (12 months total).
• VA assistance:Veterans can contact the VA Regional Loan Center at 1-877-827-3702 for free help navigating forbearance and other loss mitigation options. VA loan technicians can intervene directly with servicers on the veteran's behalf.

Fannie Mae and Freddie Mac Loans (Conventional)

If your loan is owned by Fannie Mae or Freddie Mac (check at knowyouroptions.com or freddiemac.com), standardized forbearance guidelines apply:

• Initial forbearance: Up to 6 months, with the option to extend in 3-month increments up to 12 months total.
• Payment deferral: After forbearance, Fannie Mae and Freddie Mac offer a payment deferral option where the missed payments are moved to the end of the loan — no increase in monthly payment required.
• Flex Modification: If you cannot resume regular payments, Fannie/Freddie Flex Modification targets a 20% payment reduction through rate reduction, term extension, and principal forbearance.

Portfolio and Private Loans

Loans held by banks in their own portfolio or in private securitization trusts do not follow standardized government guidelines. Forbearance terms are entirely at the servicer's discretion:

• Duration varies: some offer as little as 3 months; others may extend to 12
• Exit options are less predictable — push for modification or deferral in writing before agreeing to forbearance
• No federal mandate to offer forbearance (unlike federally-backed loans), though most servicers do offer it for documented hardships

What Happens When Forbearance Ends?

This is the most misunderstood aspect of forbearance — and where homeowners get into trouble. When the forbearance period expires, the deferred payments must be resolved. You have four main options:

Option 1: Payment Deferral (Best for Most Homeowners)

The deferred payments are moved to the end of the loan as a non-interest-bearing balance. You resume your regular monthly payment immediately — no increase. The deferred amount becomes due only when you sell, refinance, or reach the end of the loan term.

Example: A homeowner in Hillsborough County deferred 6 payments of $2,200 ($13,200 total) during forbearance. With deferral, the $13,200 is added to the end of the loan. The homeowner resumes the same $2,200/month payment. The $13,200 is due in 24 years when the loan matures — or sooner if the homeowner sells or refinances.

Availability: Deferral is available for FHA loans (through partial claims), VA loans, and Fannie Mae/Freddie Mac loans. Not all portfolio or private loan servicers offer deferral.

Option 2: Repayment Plan

The deferred amount is spread over 6 to 24 months in addition to your regular payment. Your monthly payment is temporarily higher until the arrears are fully repaid.

Example: Same homeowner — $13,200 deferred over 12 months. Regular payment: $2,200. Catch-up amount: $1,100/month. Total monthly payment for 12 months: $3,300. After 12 months, the payment returns to $2,200.

A repayment plan works if you have recovered financially and can handle the temporarily higher payment. If the increased amount is too much, ask about a longer repayment period or explore modification instead.

Option 3: Loan Modification

The deferred amount is rolled into a new, modified loan. The servicer restructures the terms — typically reducing the interest rate, extending the term, or both — to create a permanently lower monthly payment that includes the capitalized arrears. This is the best option if your financial situation has permanently changed and you need a lower payment going forward.

See the complete Florida loan modification guide for detailed information on types of modifications, qualification criteria, and the application process.

Option 4: Lump Sum Repayment

You pay the entire deferred amount at once. This is the least common resolution because most homeowners who needed forbearance do not have a lump sum available when it ends. However, if you received a windfall (insurance settlement, inheritance, bonus, asset sale), lump sum repayment brings the loan immediately current.

You are NOT required to pay a lump sum. If your servicer tells you lump sum is the only option, push back — request deferral, a repayment plan, or modification. If the servicer refuses, contact a HUD-approved housing counselor or file a complaint with the CFPB.

How Do You Request Forbearance From Your Servicer?

Step 1: Identify your loan servicer and loan type

Your servicer is the company that collects your monthly payment — listed on your statement or payment coupon. Before calling, determine your loan type:

• Check if your loan is owned by Fannie Mae at knowyouroptions.com
• Check if your loan is owned by Freddie Mac at freddiemac.com
• FHA loans: check your closing documents or call your servicer
• VA loans: check your Certificate of Eligibility or call the VA at 1-877-827-3702

Knowing your loan type tells you which forbearance guidelines the servicer must follow and which exit options are available.

Step 2: Contact the loss mitigation department

Call the servicer and ask specifically for the loss mitigation department — not regular customer service. Loss mitigation specialists are trained to discuss forbearance, modification, and other workout options. Regular customer service representatives often provide inaccurate information about loss mitigation options.

Step 3: Explain your hardship and request forbearance

Be specific about:

• What happened (job loss, medical event, divorce, insurance premium spike, etc.)
• When it happened
• How it affected your ability to make the payment
• Your expected recovery timeline

Step 4: Get the agreement in writing

Before making any reduced payment or skipping a payment, get the forbearance agreement in writing. The written agreement should specify:

• Start and end dates of the forbearance period
• Whether payments are fully suspended or reduced (and the reduced amount)
• Confirmation that the servicer will not initiate or advance foreclosure during the period
• How the deferred payments will be resolved at the end (repayment plan, deferral, modification, or other)
• How the forbearance will be reported to credit bureaus

Do not stop making payments based on a verbal agreement. Verbal promises are unenforceable. If the servicer later claims you were not approved for forbearance, the missed payments count as defaults.

How Does Forbearance Affect Your Credit?

Credit reporting during forbearance depends on your payment status when entering the agreement:

If you were current when entering forbearance

For federally-backed loans (FHA, VA, Fannie Mae, Freddie Mac), the CARES Act requires servicers to report your account as currentduring forbearance — as long as you were current before entering. This protection was established in Section 4021 of the CARES Act (P.L. 116-136). Even though the CARES Act's initial forbearance provisions had specific enrollment deadlines, the credit reporting protections set a standard that most servicers continue to follow for all forbearance programs.

If you were delinquent when entering forbearance

If you were already behind on payments when forbearance began, the account is reported at the delinquency level that existed when you entered forbearance. For example, if you were 60 days late, the account reports as 60 days late throughout the forbearance period — it should not get worse, but the existing delinquency remains.

After forbearance ends

Once you exit forbearance and begin making payments under a repayment plan, modification, or regular terms, the account should be reported as current. Each on-time payment after forbearance helps rebuild your credit. The prior delinquencies (if any) remain on your report for 7 years from the date they were first reported, but their impact diminishes over time.

When Is Forbearance the Right Strategy?

Forbearance works best for temporary hardships with a defined recovery timeline:

• Job loss with active job search: You expect to be re-employed within 3-6 months and can resume payments at that point.
• Medical recovery: You are recovering from surgery, illness, or injury and expect to return to work within a defined timeframe.
• Divorce transition: You need time to sort out finances, sell assets, or establish independent income.
• Natural disaster recovery: Your home was damaged (hurricane, flood) and you are waiting for insurance proceeds or FEMA assistance.
• Business downturn: Self-employed with a temporary revenue drop that you expect to recover from.
• Insurance premium shock:Your homeowner's insurance spiked and you need time to shop for alternatives, appeal the increase, or adjust your budget.

When Is Forbearance NOT the Right Strategy?

Forbearance delays the problem — it does not solve it. It is the wrong strategy when:

• Your income loss is permanent. If you cannot resume payments after the forbearance period, you are simply delaying the foreclosure while the total owed amount grows. A loan modification (which permanently reduces the payment) or selling before foreclosure may be better options.
• You have no plan for when forbearance ends. Entering forbearance without an exit strategy leads to a worse situation — you owe more than before (original arrears plus additional months of deferred payments), and the servicer expects resolution immediately.
• The home is severely underwater. If you owe significantly more than the property is worth and cannot afford the payments even with modification, forbearance just postpones the inevitable. Consider a short sale or deed in lieu.
• You are using forbearance to avoid facing the situation. Forbearance is a tool, not an avoidance mechanism. If you need forbearance because you are overwhelmed and do not know what to do, use the forbearance period to get professional help — contact a HUD-approved housing counselor (free) or get a free consultation with Barrett Henry.

How Does Forbearance Compare to Other Foreclosure Prevention Options?

The most common successful pathway: Forbearance → Loan Modification. You use forbearance to stabilize during the hardship, then transition to a permanent modification that makes the payment affordable going forward. This two-step approach addresses both the immediate crisis and the long-term affordability issue.

Florida-Specific Forbearance Considerations

Florida homeowners face unique circumstances that affect forbearance decisions:

Property insurance crisis

Florida's property insurance market has seen premiums increase 40% to 200% for many homeowners between 2022 and 2026. A homeowner whose insurance jumped from $2,800/year to $7,500/year has an additional $392/month in housing costs — often enough to trigger default even if their mortgage payment is unchanged. Forbearance can provide breathing room while you shop for alternative coverage, appeal the premium, or adjust your budget. However, forbearance does not solve the insurance cost — if premiums remain elevated, you may need a loan modification that accounts for the higher total housing cost.

Hurricane-related forbearance

After federally declared disasters (which Florida experiences regularly), Fannie Mae, Freddie Mac, FHA, and VA all offer disaster forbearance programs of up to 12 months for affected homeowners. If your area has been declared a disaster zone, contact your servicer immediately — disaster forbearance programs have specific enrollment windows and more favorable terms than standard forbearance.

Condo special assessments

Florida condo owners facing large special assessments under SB 4-D structural reserve requirements (F.S. §718) may qualify for forbearance if the assessment makes their total housing cost unaffordable. Document the assessment notice, the payment amount, and how it affects your ability to pay the mortgage.

How Can Barrett Henry Help During Forbearance?

The forbearance period is your window to make a strategic decision — and that decision should be informed by accurate market data. Barrett Henry, a licensed Florida REALTOR® and Broker Associate with 23+ years of real estate experience at REMAX Collective, helps homeowners during forbearance by:

• Determining your current equity position so you know whether selling is a viable option
• Running a market analysis to compare keeping the home (with modification) vs. selling
• Connecting you with HUD-approved housing counselors for free modification assistance
• If selling is the best path, listing and selling the property during the forbearance period — before foreclosure resumes

Homeowners in Tampa, Brandon, St. Petersburg, Clearwater, Lakeland, and throughout Tampa Bay can get free guidance during their forbearance period.

Forbearance buys you time — but time without a plan is just a slower path to the same problem. Use the forbearance period to evaluate every option: modification, reinstatement, selling, or bankruptcy. Get a free consultation to make an informed decision before your forbearance period ends.

This page is for informational purposes only and does not constitute legal advice. Consult a qualified Florida attorney for guidance specific to your situation.