Short answer
Forbearance lowers or pauses your payment for a while during a hardship. A payment deferral moves missed payments to the end of the loan once the hardship is over and you can pay the regular amount again. A loan modification permanently changes the loan's terms to make the payment more affordable. On Fannie Mae loans, each has its own rules, and your servicer decides which fits.
How does forbearance work?
For a home you live in, with an eligible hardship, the servicer can reduce or suspend your payment. On Fannie Mae loans, it's granted up to three months at a time and generally no more than 12 months in total. The missed amount doesn't disappear; at the end, you work out how to repay it.
How does a payment deferral work?
It's for people whose hardship is resolved, who can make the full regular payment again, but can't catch up all at once or afford a repayment plan. On Fannie Mae loans, the loan must be at least 12 months old and 2 to 6 months behind. The past-due principal and interest is set aside, without interest, to be paid when the loan ends, the home is sold or the loan is refinanced, with a lifetime cap of 12 months deferred.
How does a loan modification work?
A modification changes the loan itself, for example the term or rate, to lower the payment. Fannie Mae's Flex Modification is for loans at least 60 days late, or at risk of falling behind, and usually starts with a trial period of reduced payments. If you're less than 90 days late, expect to send a full application with your income and hardship.
Which one should I ask for?
Call your servicer as soon as you know you'll have trouble, explain your situation, and ask which options you qualify for. Get any agreement in writing. Federal rules protect you while a complete application is being reviewed; see options if you can't pay your mortgage and what a NH foreclosure notice means. A HUD-approved housing counselor can help you prepare.
Sources
- Fannie Mae Servicing Guide D2-3.2-01, Forbearance Plan
- Fannie Mae Servicing Guide D2-3.2-04, Payment Deferral
- Fannie Mae Servicing Guide D2-3.2-06, Fannie Mae Flex Modification
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.