Resources to help both servicers and borrowers manage delinquent mortgage loans and avoid foreclosure.
Fannie Mae offers mortgage servicers flexible options to help homeowners retain their homes while enduring a temporary financial hardship.
For more information, visit the Servicing Guide, Evaluating a borrower for a workout option.
A mortgage forbearance plan is an agreement between the mortgage servicer and the homeowner to pause or reduce monthly mortgage payments for a certain period, allowing homeowners to resolve their short-term hardship.
View Servicing Guide, D2-3.2-01, Forbearance Plan
If the homeowner is able to resume making their regular monthly payments following a delinquency (or forbearance plan), and can repay the missed amounts all at once, the mortgage can be reinstated.
View Servicing Guide, F-2-11: Fannie Mae’s Workout Hierarchy
Mortgage repayment plans
A mortgage servicer evaluates a homeowner for a repayment plan when the delinquency results from a temporary hardship that is now resolved. Homeowners repay the missed amounts over a period of six months. They make their repayments along with their regular mortgage payment on a monthly basis.
View Servicing Guide, D2-3.2-02: Repayment Plan
A payment deferral adds (defers) missed payments (principal and interest) to the end of the mortgage loan term as a non-interest bearing balance. The balance is due at the maturity date or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing balance of the loan. Upon completing the payment deferral, the homeowner continues paying their regular monthly mortgage payment in accordance with its terms.
COVID-19 payment deferral
Homeowners who miss up to 12 months of payments as a result of a financial hardship related to the coronavirus pandemic (COVID-19) are eligible for the COVID-19 payment deferral. This option defers unpaid amounts (principal and interest payments and any allowable out-of-pocket escrow advances made by the servicer on behalf of the homeowner for taxes and/or insurance) as a non-interest-bearing balance. The balance is due at the maturity date or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing balance of the loan. Upon completing the payment deferral, the homeowner continues paying their regular monthly mortgage payment in accordance with its terms.
View payment deferral overview.
Homeowners may be able to modify their original mortgage terms, such as monthly payment amount, loan term, or interest rate. For more information, visit Loan Modification Options.
Following a disaster, homeowners can take advantage of mortgage forbearance plans for up to 12 months while they recover and rebuild. We rely on our mortgage servicers to implement our disaster assistance policies, so they can help impacted homeowners.
When retention isn’t a viable option, Fannie Mae offers liquidation options.
Mortgage Release ™
A Mortgage Release allows the homeowner to voluntarily transfer the ownership of the property to the owner of your mortgage in exchange for a release from the mortgage loan and payments.
A short sale allows a borrower to sell their home for less than the balance remaining on the mortgage, avoiding a foreclosure.
As part of overall neighborhood stabilization efforts, servicers must ensure the quality of property maintenance services throughout the default process to eliminate community blight and protect housing values.