Learn about Forbearances

What is Forbearance?

Forbearance is a temporary relief option for homeowners who are unable to make their mortgage payments due to circumstances beyond their control, such as health issues or job loss. This allows the borrower to pause or reduce their payments for a limited time, helping them regain financial stability without facing foreclosure. Forbearance under the Minnesota Chippewa Tribe Finance Corporation allows clients a maximum of 12 months of relief over the lifetime of the loan.

Eligibility for Forbearance

If you’re facing health challenges or unemployment, you may be eligible to apply for forbearance. Below are the detailed instructions and requirements to submit your request.

Forbearance Request Instructions

1. Application: Complete the Mortgage Assistance Application.
2. Budget: Complete the Monthly Household Budget Worksheet outlining your financial situation.
3. Written Request: Submit a written request explaining the reason for the forbearance. Include details of the event (e.g., health issues or job loss) and specify the dates for which relief is being requested. The maximum forbearance period is 12 months over the lifetime of the loan.
4. Medical Documentation (if applicable): If the request is due to illness, include a written statement from your physician. This should detail the nature of the illness and the expected date of return to work, or if applicable, confirmation that a return to work is not possible.
5. Future Income Plans: Provide documentation of any anticipated future income, such as social security, disability, or other benefits.
6. Additional Information: Include any other relevant documentation, such as recent pay stubs, current income, and bank statements.

Important Information

• Forbearance Limitations: Any approved forbearance is not a loan forgiveness. Mortgage forbearance is a temporary relief option that allows homeowners to temporarily pause or reduce their mortgage payments if approved within the parameters of the requirements. The missed payments are not  forgiven but deferred to the end of the mortgage period.
• Submissions: Please submit all the required documentation to the Minnesota Chippewa Tribe Finance Corporation via mail at P.O. Box 217, Cass Lake, Minnesota, 56633; by fax at 218-335-6925; or online at info@mnchippewatribe.org. We will contact you within five business days to acknowledge receipt and inform you if additional information or documents are needed.