What if my mortgage forbearance is ending and they want a lump sum?

This notice

A mortgage letter, email, portal message, or phone script says your forbearance is ending — and the only way out the servicer describes is a lump-sum repayment of every paused or reduced payment.

This is not LIVE loss-mitigation-determination-notice. That guide is about the written decision after a complete mortgage-help application, including a short appeal window when a loan modification is denied. Keep this page when the fight is the forbearance exit demand itself: catch up everything at once, or else.

This is not LIVE mortgage-payment-returned-or-held-in-suspense or LIVE mortgage-notice-of-error-no-response. Those guides are about a payment the servicer will not apply, or a notice of error that got no timely answer. Keep this page when the paper or call is about ending forbearance with a balloon catch-up.

The CFPB Ask page What is mortgage forbearance? says forbearance lets you temporarily pause or lower payments during a hardship. You still owe the full amount. You repay the difference later. Interest on paused amounts can keep adding up until you repay them.

The CFPB guide Exit your forbearance carefully says you should contact your servicer before forbearance ends and plan what comes next. That page lists common exit paths: a repayment plan, a deferral or partial claim, a loan modification, or — if you choose it and can afford it — a reinstatement or lump-sum payment. It also says that for most government-backed loans, servicers cannot require a lump sum, and that if you only hear about lump-sum repayment you should ask about other options.

That same exit page says Fannie Mae and Freddie Mac do not require a lump sum at the end of forbearance, that FHA does not require lump-sum repayment, that USDA guaranteed loans do not require a lump sum, and that VA servicers cannot require an immediate lump sum after a CARES Act forbearance. For loans that are not government-backed, the page tells you to check what your servicer actually offers and to ask about limits, options, and fees.

Recent complaint themes describe the same pattern: a Rocket, LoanCare, PennyMac, or Onity exit call or letter that pushes a full catch-up while the borrower is still asking about deferral or modification. Official CFPB exit text wins any tip that says “lump sum is your only choice” on a covered government-backed loan.

Official path

1. Save the forbearance agreement, the end date, and every letter, email, chat, or call note that demands a lump-sum catch-up. Circle the amount claimed and the deadline the company gave you.

2. Confirm who owns or backs the loan — Fannie Mae, Freddie Mac, FHA, VA, USDA, or a private investor. The CFPB exit page treats government-backed loans differently from private ones on the lump-sum rule. Ask the servicer in writing if you are unsure.

3. Contact the servicer before the forbearance end date. The exit page says servicers of Fannie Mae and Freddie Mac loans generally reach out about 30 days before a forbearance plan is scheduled to end. Do not wait for that call if you already have a lump-sum demand in hand.

4. Ask in writing for every home-retention option on the CFPB exit page that could fit you: a repayment plan (spread the missed amount over several higher payments), a payment deferral or FHA partial claim (resume the regular payment while missed amounts move to a later due date or subordinate claim), or a loan modification if you cannot afford the old payment. Say clearly that a lump sum is not affordable and is not the only option you will accept without a written review.

5. Use free help. Call a HUD-approved housing counselor through the CFPB finder or the Ask page How do I find a housing counselor?. The exit page also points to the HOPE Hotline at (888) 995-HOPE (4673). Counselors help you talk to the servicer and sort paperwork at little or no cost.

6. Send a short written request (mail with tracking, or the servicer’s secure portal) that restates the forbearance end date, rejects lump sum as the only path if you cannot pay it, and asks for a written list of options with eligibility rules. Keep copies. If the company later issues a full loss-mitigation determination letter, switch to that paper’s appeal or response rules — including any 14-day modification-appeal clock described on LIVE loss-mitigation-determination-notice and in 12 CFR § 1024.41.

7. Submit a complaint at Submit a complaint if the servicer still treats lump sum as the only exit on a government-backed loan, refuses to evaluate deferral, repayment, or modification, or will not put options in writing. Attach the forbearance plan, the lump-sum demand, and your written ask. The Help for homeowners hub collects the same exit tools.

People sometimes say you must wire the full missed balance the day forbearance ends or foreclosure starts automatically. The CFPB exit page says most government-backed loans cannot require that lump sum and that you should plan options with the servicer and a counselor first. Official steps win that conflict.

What people reported

Often helps

• Sending one written ask before the end date: forbearance account number, end date, “lump sum is not affordable,” and a request for deferral, repayment plan, or modification in writing — then looping in a HUD counselor on the same packet.
• Matching the loan to Fannie Mae, Freddie Mac, FHA, VA, or USDA rules on the CFPB exit page so the servicer cannot treat a private-investor script as the only answer.

Often fails

• Agreeing to a lump-sum deadline on a phone call with no written options list, then scrambling when the wire cannot clear.
• Ignoring the forbearance end date while waiting for a portal message that never lists deferral or modification.

Template

[DATE]

[SERVICER NAME]
Loss mitigation / forbearance unit
[ADDRESS OR SECURE PORTAL]

Re: Forbearance exit options — loan ending [LAST FOUR]
Forbearance end date: [DATE]

I am in an active forbearance (or my forbearance is scheduled to end on the date above). On [DATE] I received a letter, email, or call stating that I must repay the paused or reduced amounts in a lump sum.

A lump-sum reinstatement is not affordable for me. Under the CFPB “Exit your forbearance carefully” guidance, please evaluate and send me in writing every home-retention option available for this loan, including:

1. A repayment plan that spreads the missed amounts over time;
2. A payment deferral or, if this is an FHA loan, a partial claim; and
3. A loan modification if I cannot resume the current payment.

Please confirm in writing who owns or backs this loan (Fannie Mae, Freddie Mac, FHA, VA, USDA, or other) and which options that investor or agency allows. Do not treat lump-sum repayment as my only path without that written review.

I am also working with a HUD-approved housing counselor. Please reply in writing within [REASONABLE TIME YOU CHOOSE, SUCH AS 14 DAYS] and before any foreclosure referral.

Sincerely,
[NAME]
[PROPERTY ADDRESS]
[PHONE]
[EMAIL]
[LOAN NUMBER]

Stop here if…

• You already have a written loss-mitigation determination that denies a loan modification — use LIVE loss-mitigation-determination-notice and any appeal deadline on that letter.
• Your only issue is a payment the servicer returned or parked in suspense — use LIVE mortgage-payment-returned-or-held-in-suspense.
• You never entered forbearance and need general hardship options — start with the CFPB page If I can’t pay my mortgage loan, what are my options?.
• A foreclosure summons or sale notice already arrived — do not ignore the court paper; get a housing counselor and legal help immediately.

FAQ

Is this the same as a loss-mitigation determination notice?

No. A loss-mitigation determination is the written decision after the servicer finishes reviewing a complete mortgage-help application, and a loan-modification denial can carry a short appeal window. Keep this page when forbearance is ending and the company is pushing a lump-sum catch-up before — or instead of — a full options review.

Do I have to pay everything I skipped in one payment?

Not as the only path on many government-backed loans. The CFPB exit-forbearance page says that for most government-backed mortgages, servicers cannot require a lump sum, and that if you only hear about lump-sum repayment you should ask about other options such as a repayment plan, deferral or partial claim, or a loan modification.

What is a payment deferral?

On the CFPB exit page, a deferral (or, for some FHA loans, a partial claim) moves missed amounts so you can resume your regular payment. The deferred amount is generally repaid later — for example when you sell, refinance, or reach the end of the loan — instead of as a balloon bill on the day forbearance ends. Ask your servicer which program fits your loan owner (Fannie Mae, Freddie Mac, FHA, VA, USDA, or a private investor).

Will interest keep adding up during forbearance?

The CFPB forbearance Ask page says you still owe the full amount and that interest on paused amounts can continue to add up until you repay them. Get the interest rules for your plan in writing before you agree to an exit option.

What if foreclosure papers already arrived?

Do not ignore a foreclosure summons or sale notice. Call a HUD-approved housing counselor and get legal help right away. You can still ask the servicer for loss-mitigation options and use the CFPB complaint channel, but the court paper has its own deadlines.