By Frederick Blum, Broker/Owner of Blum Realty Group
Credible included my comments in Lindsay Frankel’s article, “What Is Mortgage Forbearance and How Does It Work?”, identifying me as the broker and owner of Blum Realty Group in San Diego.
The issue is practical: if a homeowner needs temporary payment relief, what needs to happen during that period so the home remains affordable afterward? For a San Diego owner considering whether to keep or sell a property, the answer requires both the loan terms and a realistic household budget.
“Forbearance buys time and is best used for those experiencing a temporary hardship with a defined end date.”
That is one of my comments in Credible’s coverage. The following is additional guidance for organizing the property and cash-flow decisions with your servicer and other advisers.
Start with what changes in the household budget
If income has temporarily fallen, identify the expense the household can afford now and the amount it can afford when income returns. Use actual take-home income and necessary expenses. A hoped-for promotion, uncertain commission or possible refinance should not carry the entire repayment plan.
Put dates next to the assumptions. When is the owner expected to return to work? When will benefits end? When does a temporary medical or relocation expense fall away? If the answer changes, update the plan while there is still time to consider alternatives.
The Consumer Financial Protection Bureau describes forbearance as a temporary pause or reduction in mortgage payments arranged with the servicer. The amounts postponed still need to be addressed under the loan’s available repayment options.
Contact the servicer using the number on the mortgage statement. Keep a written record of the conversation, the documents requested and the terms offered. Ask for the agreement and the steps required before its expiration in writing.
Build a calendar for the property, not just the mortgage
List every property expense and identify who will pay it during the relief period. That includes taxes, insurance, association dues and any necessary maintenance. Ask the servicer how the escrow account will be handled and whether a shortfall could affect later payments.
For example, a temporary income reduction may make a lower mortgage payment helpful, while an annual insurance bill or an association assessment is still due. A calendar that includes only the mortgage can miss the very expense that causes the next cash shortage.
I would also identify the repairs that protect the property from further damage. A small leak and a cosmetic improvement belong in different categories. Request written estimates for necessary work and use the actual amounts in the budget.
Our San Diego ownership-cost guide provides a framework for listing the recurring and irregular expenses associated with a home.
Resolve the exit terms before the relief period ends
Ask the servicer what happens when regular payments resume, how the postponed amounts will be treated and what documentation will be needed. Request the eligibility criteria and review deadlines for the options that apply to this particular loan.
The CFPB’s guide to leaving mortgage forbearance discusses options such as repayment plans, deferrals and modifications. Availability depends on the loan and circumstances. A homeowner should obtain the applicable terms rather than assume a particular option will be available.
Review any proposed payment against the household budget again. If the regular payment becomes affordable but the proposed catch-up payment does not, tell the servicer before accepting an arrangement. Ask what other eligible option can be evaluated.
For example, assume a written agreement postpones $2,000 a month for three months. That creates $6,000 to address under the agreement. If the servicer then offers an eligible six-month repayment plan, the catch-up component alone would be $1,000 a month on top of the regular payment. An owner who can resume the regular payment may still be unable to carry that extra amount. These are hypothetical terms, but doing that arithmetic before the relief ends is essential.
Keep copies of all submissions and confirmations. If documents are missing or a decision is taking longer than expected, those records make it easier to identify the outstanding item and the relevant date.
If selling is an option, calculate it early
A homeowner can evaluate a sale while also discussing retention options with the servicer. The initial real estate work is to estimate a supportable sale-price range, necessary preparation, the likely marketing period and the cost of holding the home until closing.
Request current payoff information through the appropriate process. The balance displayed on a statement may differ from the amount required to release the loan at closing. Other liens, association balances and transaction expenses also affect the proceeds.
The useful comparison is the owner’s expected position after each option. If the home is retained, what payment and reserve balance remain? If it is sold, what proceeds remain after the actual obligations, and what will replacement housing cost?
A market analysis should also account for property condition. Get separate estimates for a sale in its current condition and a sale after limited, purposeful preparation. Spending money on work is sensible only when the likely result and the owner’s available time justify it.
If a foreclosure deadline or another legal issue is involved, coordinate promptly with qualified legal counsel and the servicer. Real estate marketing and a pending sale do not set the loan’s legal deadlines.
Questions to take to the first conversation
- Which payment-relief options are available for this exact loan and hardship?
- What payments remain required, and how are taxes and insurance handled?
- How will the arrangement and payment history be reported to credit agencies?
- When must I submit documents for the next review or an exit option?
- What will I owe if I sell or refinance before the postponed amounts are repaid?
- Who should I contact if the income recovery or sale schedule changes?
Those questions help the homeowner organize the decisions and give each professional the information needed to do their part. The servicer addresses loan options; a qualified attorney addresses legal rights and deadlines; a real estate broker evaluates the property’s sale alternatives.
For a San Diego property, Blum Realty Group’s seller services can help establish the market comparison.
Frequently asked questions
Are postponed mortgage payments forgiven during forbearance?
No. Forbearance temporarily pauses or reduces payments under an agreement with the servicer. Ask how the postponed amounts will be repaid, what exit options apply and how the arrangement affects the amount due if you sell or refinance.
Can I evaluate selling while discussing forbearance?
Yes. A broker can help estimate the property’s sale alternatives while the servicer reviews loan options. Obtain current payoff information and coordinate any legal deadlines with qualified counsel so the sale analysis reflects the actual obligations and timing.
What should I ask before a forbearance period ends?
Ask how postponed payments will be handled, which exit options apply to your loan, what documents are required and when they are due. Review the proposed payment against your household budget and request the applicable terms in writing.
Read the original coverage
Read Lindsay Frankel’s complete Credible article, updated September 18, 2026, for the broader discussion and my published comments. You can find more of my coverage on BRG’s Media page. The publisher article and linked CFPB guidance were reviewed September 19, 2026.