Mortgage forbearance offered much-needed relief to millions of homeowners during the coronavirus pandemic, but now many borrowers are leaving the programs. The CARES Act established forbearance programs last year for federally backed mortgages, but private lenders and servicers often provided their own options.
Forbearance is when your lender or servicer allows you to pause or reduce your mortgage payments, but you are still responsible for paying back what you miss.
Although the economy is now improving, not all homeowners are financially stable yet. The number of homeowners in forbearance dropped from 4.1 million in May 2020 to 2.2 million in May 2021, according to Mortgage Bankers Association estimates.
Kim Porter | Yahoo Finance