Mortgage forbearance has been a lifeline for struggling homeowners during the pandemic. Forbearance allows borrowers to suspend mortgage payments without being flagged as past due on their loans, thus preserving their credit scores and avoiding dire consequences like foreclosure.

Originally, mortgage forbearance was to last 360 days under the CARES law, the relief bill promulgated at the end of March 2020. The forbearance was then extended by three months, so that borrowers could suspend their loans for 15 months. The Biden administration recently extended it again, this time allowing loans forbidden by June 30, 2020 to remain on hold for up to 18 months.

Despite this extension, the percentage of forborne mortgages declined steadily in February. The Mortgage Bankers Association reports that the total number of forbeared loans fell to 5.22% for the week ending February 14, 2021. A week earlier, that percentage was 5.29%. The percentage translates to about 2.6 million mortgage holders now forborne.

The percentage of loans withheld has declined for three consecutive weeks. But with prolonged abstention, this trend could be short-lived. Forbearance loans can now stay that way longer, and the deadline for requesting forbearance has been extended to June 30, 2021, meaning more borrowers may seek this protection in the coming months.

Should you suspend your mortgage?

Forbearance is a good option if you’re having trouble making your mortgage payments, as it can keep you from falling behind and damaging your credit. It doesn’t make your mortgage payments go away – it just allows you to put them on hold while you get back on your feet and catch up when the forbearance ends.

Even if you are making your mortgage payments, if you are having difficulty paying other bills, forbearance can allow you to free up the money you would normally put in your mortgage and use it for expenses that cannot. not wait, such as food, medicine and other essentials.

Of course, the thought of making up for missed mortgage payments can seem daunting. It is important to know that your lender cannot force you to repay these payments in a lump sum. On the contrary, you have a reasonable time to make up for payments that you have skipped. Often times, a lender will extend your loan by postponing missed payments until the end of your repayment period. In other words, if you miss 12 payments, you pay off your mortgage for an additional year beyond your original loan end date.

Another option to make up for missed payments is to make higher monthly payments after the forbearance ends. However, if your financial situation doesn’t allow it, don’t worry, just talk to your lender about a payment plan that’s right for you.

Also, if you can make partial mortgage payments while your loan is on hold, you are allowed to do so. This way you have less to catch up on afterwards.

Although mortgage abstention rates fell steadily in February, there is no guarantee that this trend will continue. Now that homeowners can extend forbearance and take longer to apply, we could actually see the percentage of forborne mortgages increase in March. This should not necessarily be a cause for concern or be taken as an indication that the economy is retreating from the recovery. On the contrary, it could simply mean that borrowers choose to take advantage of the protections available to them.