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Loan & Mortgage · Know Your Options

What Is Mortgage Forbearance — and How Does It Work in Hawaiʻi?

If you're struggling to make your mortgage payments, one of the first things your loan servicer may offer is forbearance. It's a word that comes up often — but most homeowners don't fully understand what it means, how it works, or what happens when it ends.

Here's what Oʻahu homeowners should know before requesting forbearance or agreeing to one.

What is forbearance?

Mortgage forbearance is a temporary agreement between you and your loan servicer that allows you to pause or reduce your monthly mortgage payments for a set period of time. During forbearance, your servicer agrees not to report you as delinquent or pursue foreclosure — as long as you follow the terms of the agreement.

The key word is temporary. Forbearance is not forgiveness. The payments you skip or reduce are still owed. At the end of the forbearance period, you'll need to repay what was missed — either all at once, over time through a repayment plan, or by rolling the amount into the loan through a modification.

When does forbearance make sense?

Forbearance is designed for short-term hardships — situations where your financial difficulty is temporary and you expect to be able to resume normal payments once the crisis has passed. Common examples:

If your hardship is ongoing — if your regular payment was never truly affordable to begin with, or your income has permanently changed — forbearance alone may not be the right solution. In those cases, a loan modification might be worth exploring alongside forbearance.

What happens when forbearance ends?

This is the part most homeowners don't think through before agreeing to a forbearance. When the pause period ends, the missed payments don't disappear. Depending on what your servicer offers, you may be asked to:

Before you agree to forbearance, ask your servicer: "When forbearance ends, what exactly will I owe, and what are my repayment options?" Get the answer in writing. Understanding the exit before you enter is the most important step.

Forbearance vs. loan modification vs. repayment plan

Forbearance Repayment Plan Loan Modification
What it does Pauses or reduces payments temporarily Catches up on missed payments over time Permanently changes loan terms
Duration Temporary (weeks to months) Temporary (typically 3–12 months) Permanent
Missed payments Still owed — deferred Repaid gradually on top of regular payment Often rolled into new loan balance
Best for Short-term crisis, income expected to recover Past-due amounts when regular payment is now manageable Long-term hardship, ongoing affordability issue

How to request forbearance in Hawaiʻi

Contact your loan servicer — the company you send your mortgage payments to — directly. You don't need a lawyer or advocate to request forbearance. What you do need is a clear explanation of your hardship and a realistic picture of when you expect to recover.

A few things to have ready when you call:

A HUD-approved housing counselor can help you prepare for this conversation, review any agreement before you sign, and make sure you understand exactly what you're committing to. Their services are free.

Will forbearance affect my credit?

It depends on your servicer and how the forbearance is reported. Some agreements are set up so that payments are not reported as missed during the forbearance period. Others may still affect your credit score. Always ask your servicer specifically how the forbearance will be reported to credit bureaus — and get that answer in writing — before agreeing.

How I can help

I'm Gift — a volunteer homeowner educator on Oʻahu. I'm not a HUD-approved housing counselor or attorney, but I can help you understand forbearance clearly, think through whether it's the right option for your situation, and connect you with the right professionals. Text me — the conversation is free, personal, and there's no pressure toward any particular outcome. 🤙

Disclosure: I am an advocate and educator — not an attorney or HUD-approved housing counselor. This article is for general informational purposes only and is not legal, financial, or mortgage advice. Forbearance terms vary by lender, loan type, and individual circumstances. Always consult a HUD-approved housing counselor or licensed Hawaiʻi attorney before agreeing to any forbearance or repayment arrangement. In some cases, I may be interested in purchasing a home — always disclosed upfront, never pressured. Support is 100% free: no contracts, no fees, no equity taken. (HRS § 480E)
Not sure if forbearance is right for your situation?
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Text HELP to (808) 215-5828
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