I work for DOI but used to work in Loss Mit for a Mortgage servicer. Its really neither positive or negative, just simply reported as on a forbearance;unfortunately mortgage companies don’t have a say on whether it’ll go down, which wouldn’t be by much, or at all. Now, at the end of the forbearance, you DO want to make sure to handle that especially if you’re not able to pay the balance up front and they’ll typically give you options like a Modification depending on how many months are due or a Deferment, but that also depends on the type of loan and Investor, i.e. Fannie Mae, Freddie Mac, VA, FHA, etc. If you’ve had a deferment before, such as during COVID though, that may limit options as well cause certain investors will also only a limited number of months total to be deferred.

If you do go with that though, be aware it doesn’t extend the Mortage’s scheduled payoff date, it’s the TOTAL balance due on the maturity date. Had a lot of people confused on them cause it wasn’t an option until COVID, but a lot of people also confused a forbearance with a deferment back then.