Forbearance Overview

Are you experiencing a short-term hardship? Forbearance may provide temporary payment relief to assist homeowners during the Coronavirus pandemic. 

"We are facing a temporary hardship, we just need help for a few months."

What is Forbearance?

With this option, you and Holyoke Credit Union agree to temporarily suspend your monthly mortgage payments for a specific period of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.

Forbearance may be an option if you are:

  • Behind on your mortgage payments or on the verge of missing payments
  • Experiencing a temporary hardship

What are the benefits?

  • Temporarily suspend your monthly payment—giving you time to improve your financial situation and get back on your feet
  • No damage to your credit score


Forbearance suspends your monthly mortgage payment completely—during the forbearance period. If you qualify for forbearance, you and Holyoke Credit Union will discuss the forbearance terms:

  • length of forbearance period,
  • the terms of repayment.

After the forbearance period has ended, you will need to repay the amount that was suspended. However, there are a few options available if you qualify— make a one-time payment for the amount due (reinstatement); or add a specific amount to your payments each month until the entire amount is repaid (Repayment Plan).


Step 1

Gather your financial information — Make sure you have your basic financial and loan information on hand when you call Holyoke Credit Union. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g., car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

Step 2

Explain your current situation — Be ready to outline your current COVID-19 hardship and explain why you are having trouble making your mortgage payment and if this is a short-term or long-term problem. Holyoke Credit Union will need to understand the reasons why you are having difficulty in order to find the right solution for you.

If you have been financially impacted by the COVID-19 pandemic and meet the following criteria we may be able to help you:

  • Your loan must have been current or less than 31 days delinquent as of March 13, 2020, the date of the National Emergency declaration related to COVID-19; and
  • You must have experienced a financial hardship resulting from COVID-19, for example, unemployment, a reduction in regular work hours, or illness of a borrower/co-borrower or dependent family member which has impacted your ability to make your monthly loan payment(s).

Step 3

Contact Holyoke Credit Union. Tell them you are interested in a Forbearance and you want to see if you qualify.

The biggest mistake you can make is to wait any longer to take action. Contact Holyoke Credit Union today to see if a Forbearance is an option for you.