What Happens When My Mortgage Forbearance Ends in Indiana?
Mortgage forbearance gave many Marion County and Indianapolis homeowners temporary relief from payments during financial hardship. But forbearance ends — and when it does, you must address the missed payments. Understanding exactly what your servicer can require, what options are available, and how to protect yourself from foreclosure after forbearance is critical.
Call (317) 495-3440 — Free ConsultationWhat Happens at the End of Forbearance?
When your forbearance period ends, you must resume making your regular mortgage payments. You also owe the payments that were missed during forbearance. Your servicer is required by CFPB Regulation X (12 CFR § 1024.41) to evaluate you for all available loss mitigation options before requiring repayment of the missed amounts. Your servicer cannot require a lump-sum repayment of all missed payments at once without first evaluating you for other options.
Your Repayment Options After Forbearance
After forbearance ends, your servicer must offer you the following options (if you qualify): (1) Repayment plan — spreading the missed payments over a period of time (typically 3–12 months) added to your regular payment; (2) Payment deferral — adding the missed payments to the end of the loan as a non-interest-bearing balloon payment due at payoff or sale; (3) Loan modification — permanently restructuring the loan terms to make the payment affordable; (4) Lump-sum repayment — paying all missed amounts at once (this cannot be the only option offered). The best option depends on your current income and financial situation.
Payment Deferral: The Most Common Post-Forbearance Option
For many homeowners, payment deferral is the most attractive post-forbearance option. The missed payments are added to the end of the loan as a non-interest-bearing balloon payment. You resume your regular monthly payment as if the forbearance never happened. The deferred amount is due when you sell, refinance, or pay off the loan. This option is available for loans owned by Fannie Mae, Freddie Mac, FHA, VA, and USDA. Contact your servicer to determine if your loan is eligible.
What If You Cannot Afford Payments After Forbearance?
If your financial situation has not improved enough to resume payments after forbearance, you have additional options: (1) Request an extended forbearance — some programs allow extensions; (2) Apply for a loan modification — if your income has permanently decreased, a modification may make the payment affordable; (3) Sell the property — if you have equity, selling before foreclosure preserves your equity and avoids the most severe credit consequences; (4) File for bankruptcy — Chapter 13 allows you to restructure all debts including mortgage arrears.
Protecting Yourself from Foreclosure After Forbearance
The most important thing you can do as forbearance ends is to communicate proactively with your servicer. Do not wait for them to contact you. Request a complete loss mitigation evaluation in writing. Document all communications. If your servicer is not following CFPB Regulation X requirements, file a complaint with the Consumer Financial Protection Bureau. If you cannot resolve the situation with your servicer, consult a licensed Indiana attorney or HUD-approved housing counselor.
Indiana Legal References
The following Indiana statutes are referenced on this page. Links go directly to the Indiana General Assembly website.
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