Yes. Based on your plan, you may not be required to make payments while on forbearance. However, we encourage you to make any payment you’re financially able to make. This will assist in easing the transition into a long-term solution and reduce the amount that needs to be repaid later. You can make a fee-free payment by accessing Mortgage assistance from your mortgage account within online banking and the mobile app and select Make a payment. If you need additional payment assistance, you can call us at 800-365-7900.
Repayment plan
A repayment plan allows you to pay your regular monthly payment plus additional funds applied to past-due amounts. Payments are distributed over an agreed-upon period of time.
This option may work for you if:
You can afford your regular monthly payments and other expenses
You have extra funds at the end of the month
Loan modification
This option allows you to roll interest and escrow shortage from delinquent (late) payments into the existing loan. You may qualify for an interest-rate reduction to have the term of the loan extended.
This option may work for you if:
You can afford your regular monthly payment or a slight increase in your payment, plus other monthly expenses
You don’t have substantial funds left at the end of the month
Payment deferral
This option is available for eligible homeowners who have resolved a temporary hardship and resumed their monthly payments, but who cannot afford to repay what they already owe.
Forbearance
If monthly payments are not an option for you, a forbearance plan might help. Forbearance plans suspend or reduce payments for an agreed-upon period. While interest will accrue on the account, you will not be required to make payments during this period.
What to expect during forbearance
No. Interest will accrue normally on your account. There will be no late fees or penalties while you are on a forbearance plan.
Automatic payments will be suspended during forbearance. Depending on the timing of this agreement, your next scheduled payment still may occur. If you need a refund for that payment, let us know and we’ll return those funds.
We’ll process any payments made during a forbearance period as normal.
- If you make a full payment, we’ll apply those funds on the same business day we receive them.
- If you pay less than your full monthly payment, we’ll hold any money in an account until there are enough funds to pay the oldest past due payment. Interest will continue to accrue normally and will be reflected in your monthly billing statements.
Making payments won’t end your forbearance protection, and it will help ease the transition into a long-term solution and reduce the amount that needs to be repaid later.
Yes, you can choose to pay only the escrow portion of your monthly payments while on a forbearance plan. These options allow you to indicate you want your payment to go to escrow.
- Payments can be made via usbank.com or the U.S. Bank Mobile App.
- You can also send your escrow payment through the mail by including the coupon attached to your monthly billing statement.
Paying toward your escrow will not end your forbearance protection. All long-term solutions presented to you at the end of your forbearance period will account for the required escrow balance, while also ensuring that your monthly payment remains affordable.
If you had escrow on your loan when you entered the forbearance, we’ll continue to pay for your taxes and insurance on your behalf throughout the forbearance period.
Yes. If your taxes and insurance are not escrowed, you’ll need to continue making those payments during forbearance. If you can't continue to pay, contact us at 866-697-4179 for your escrow initiation options.
Rest assured that you are not required to make a payment at any time while on the forbearance plan. Your monthly statements will continue to reflect these accruing payments and interest, showing them as “past due.” This balance will be considered when your forbearance plan ends, or your hardship is resolved.
Every day, scam artists target millions of people to steal money or confidential banking information. If you receive an offer or advice that sounds too good to be true – such as a promise for immediate relief from foreclosure – it’s probably a scam. Here are some additional recommendations to help you avoid fraud or scams:
- Protect your information. Only share sensitive information with sources you trust.
- Be cautious of people offering assistance for a fee. U.S. Bank does not charge a fee for providing mortgage assistance such as a forbearance, deferment or modification.
If you suspect fraud, contact us immediately at 877-595-6256. We are available 24/7 to help protect you.
That’s great news! Visit Mortgage assistance from your mortgage account within online banking or the mobile app to conclude your forbearance, and then explore options to address any accrued or unpaid payments.
Any payments that remain unpaid at the end of the forbearance will become immediately due. If you are unable to reinstate the accrued payments, you’ll need to apply for long-term assistance options, which will be based on a final review of eligibility. You’ll need to initiate this review, as it will not occur automatically.
What to expect after forbearance
Any unpaid bills will come due when the forbearance period ends. Visit your mortgage account and choose Mortgage assistance to explore your repayment options, which will vary depending on your financial situation.
If you still need assistance with accrued payments, you’ll need to apply for long-term assistance options. If you’re eligible, these options might include adding suspended payments to the end of the loan to be paid at maturity or payoff, or adding the suspended payments into the loan and extending the maturity date.
Our top priority is to keep you in your home with affordable monthly payments. If you have questions after reviewing your long-term options, you can reach out to your Relationship Manager to discuss your situation.
A deferment moves the past-due payments – plus any advances made on your behalf, like taxes – to the end of the loan, payable upon payoff of the loan. Deferment will generally occur at the end of the forbearance period and once you can resume monthly payments. A previous deferment or modification won’t disqualify you from current or future eligibility for a loan modification.
A loan modification, or changes to your loan’s terms, might be an option if hardship has led to a decrease in your income. The new loan terms would aim to reduce your monthly payment amount.
Any previous assistance program, such as a deferment or modification, won’t disqualify you from eligibility for a new loan modification.
When you’re ready to discuss your options, reach out to us via Mortgage assistance from your mortgage account within online banking or the mobile app. You can also call us at 855-698-7627. We’ll help you with solutions specific to your financial situation.
Depending on your situation, options after the forbearance period may include:
- Deferment: A deferment moves the past-due payments into an account without interest. It may also include any advances made on your behalf, like taxes. You’ll be responsible for paying the deferment amount upon the maturity date of your existing mortgage – or earlier if the property is sold or transferred, or the loan is refinanced or paid off.
- Modification: A modification refers to changing the existing terms of your loan, including extending the term or adjusting the interest rate.
- Repayment plan: A repayment plan allows clients to pay their past due amount in several months, along with their existing mortgage payments.
Your credit could be adversely impacted if you choose to exit the forbearance without first paying off past-due bills.
If you don’t pursue further help, unpaid suspended payments could become past due, leading to mortgage default and possibly foreclosure. When your forbearance period is close to ending, you can explore your options for long-term help by selecting Mortgage assistance from your mortgage account within online banking and the mobile app.
You should work with us as soon as possible on the next steps of your forbearance. Any unpaid suspended payments could become past due and late fees would resume, which may lead to mortgage default and possibly foreclosure. We want to keep you in your home, and our experienced relationship managers are here to assist.
Since every situation is unique, we encourage you to reach out to a trusted tax professional for advice before the end of the tax year.
- If you missed any regular mortgage payments – or paid less than the regular amount – because you were on a forbearance plan, there may be impacts to the mortgage interest, real-estate taxes and/or mortgage insurance paid as reported on your 1098 statement.
- If you didn’t make payments while on forbearance, the amount of mortgage interest received from payer(s)/borrowers (Box 1 on the 1098 form) and mortgage insurance premiums paid (Box 5 on the 1098 form) may be different from prior years.
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