Virginia Mortgage Forbearance
Forbearance Ended — Now What? Your Virginia Repayment Options Explained
Thousands of Virginiahomeowners are still dealing with the aftermath of COVID forbearance — 12 to 18 months of paused payments now coming due. You have real options beyond a lump-sum payback. Here is what you need to know.
What Is Mortgage Forbearance?
Forbearance is a temporary pause or reduction in your mortgage payments, granted by your lender during a documented financial hardship. It is not forgiveness — the paused amounts are still owed.
The CARES Act (2020) allowed up to 18 months of forbearance for homeowners with federally backed loans (FHA, VA, Fannie Mae, Freddie Mac, USDA). Many Virginia homeowners used this relief but now face the question of what comes next.
Important: Act before foreclosure starts
Virginia is a non-judicial foreclosure state. Once a servicer refers a loan to foreclosure, the trustee can schedule a sale in as little as 45-60 days — without any court hearing. If your forbearance has ended and you are behind, contact your servicer and a HUD-approved counselor now.
Your Repayment Options After Forbearance
Lump Sum Repayment
Best if: you have the funds available
Pay all missed payments at once when forbearance ends. No change to your loan terms.
Not required for federally backed loans — servicer cannot force this.
Repayment Plan
Best if: you have income but cannot pay a lump sum
Spread the missed payments over 3–12 months by adding an extra amount to each monthly payment.
Requires sufficient income to support higher monthly payments.
Payment Deferral
Best if: your hardship was temporary and income is restored
Move all missed payments to the end of the loan as a non-interest-bearing balloon balance. Available for Fannie Mae, Freddie Mac, FHA, and VA loans.
You will owe a larger balance at the end of the loan or when you sell.
Loan Modification
Best if: your income has permanently decreased
Permanently restructure the loan terms — reduced rate, extended term, capitalized arrears — to achieve a lower monthly payment.
Takes 30–90 days. Requires documented income.
Sell for Cash
Best if: you cannot afford the home long-term
If you have equity, a cash sale often nets more than waiting for foreclosure and gives you full control of the timeline. We can close in 7 days.
No longer owning the home, but you walk away with equity and no foreclosure record.
Short Sale or Deed in Lieu
Best if: the home is underwater and you cannot repay
Sell the home for less than you owe (short sale) or hand it back to the lender (deed in lieu). Both avoid a public foreclosure.
Must be approved by the lender. Junior liens complicate deed in lieu.
What the Timeline Looks Like After Forbearance Ends
Forbearance ends
Servicer contacts you to discuss repayment options. You have 30 days to respond before foreclosure review begins.
Days 1–30
Contact your servicer immediately. Request loss mitigation application. Begin gathering documents for loan modification or deferral.
Days 30–60
Submit complete loss mitigation application. Servicer is legally required to pause foreclosure referral while reviewing a complete application.
Days 60–90
Servicer issues decision. If approved for deferral or modification, trial period begins. If denied, you have 14 days to appeal.
Day 90+
If no application is submitted or all options are exhausted, servicer can refer loan to foreclosure. In Virginia, this means foreclosure can proceed within 45-60 days.
Mortgage Forbearance Virginia — Frequently Asked Questions
What is mortgage forbearance?
Forbearance is a temporary agreement with your lender to pause or reduce your mortgage payments during a financial hardship. It is not forgiveness — you still owe the paused payments.
Do I have to repay all missed payments at once after forbearance?
No. For federally backed loans (FHA, VA, Fannie Mae, Freddie Mac, USDA), lenders cannot demand a lump-sum repayment at the end of forbearance. You must be evaluated for a repayment plan, payment deferral, or loan modification.
What is a COVID forbearance and is it still available?
The CARES Act COVID forbearance — which provided up to 18 months of paused payments for federally backed loans — ended in 2023. If you exited COVID forbearance and fell behind again, your servicer must still evaluate you for all available loss mitigation options before initiating foreclosure.
What happens if I cannot repay the missed forbearance payments?
If you cannot afford a repayment plan, payment deferral, or loan modification, you may need to consider selling the home — traditional sale, short sale, deed in lieu, or cash sale.
How long can a lender wait before starting foreclosure after forbearance ends?
For federally backed loans, servicers are required to review a complete loss mitigation application before referring a loan to foreclosure. You typically have 30–90 days to submit an application before proceedings begin.
Do Not Wait Until Foreclosure Starts
Virginia foreclosures move fast. If your forbearance has ended and you are not sure what to do next, talk to us. The earlier you act, the more options you have.
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I want to keep my house
Book a free 15-minute call. We will review your loan type, forbearance history, and which repayment or modification path fits your current income.
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I need to sell and move on
Get a no-obligation cash offer. We buy houses as-is, pay all closing costs, and can close in 7 days — before the foreclosure clock runs out.
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