Forbearance Recovery Calculator

Forbearance suspends payments temporarily. This calculator projects recovery of missed amounts.

Monthly payment

Forbearance months

Repayment term months

Cure probability %

Expected recovery

$8,580

Missed balance

$13,200

Expected write-off

$4,620

How the math works

Recovery = missed × cure probability. Write-off = missed − recovery.

Structure forbearance with auto-debit start at cure. Most redefaults come in month 1-3 of repayment; strong structure reduces that probability by 10-20 points.

How to Use

Enter monthly payment.
Enter forbearance months.
Enter repayment term.
Enter cure probability.
Read expected recovery.

Frequently Asked Questions

What is forbearance?

Lender temporarily suspends or reduces payments. Borrower repays later via lump sum, spread repayment, or term extension. Bridges short-term hardship.

Cure rate?

60-75% for short-term hardships (job loss, medical). Lower (30-50%) for structural problems. Prior delinquencies reduce cure rate.

Repayment structures?

Lump sum at end: highest risk. Partial catch-up + term extension: most common. Full capitalization of missed into principal: easiest on borrower.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.