--- title: How to defer all or part of borrower’s scheduled payment? description: This article provides ideas & considerations for deferring all or part of borrower’s scheduled payment. --- [Skip to content](https://help.themortgageoffice.com/knowledge/supplement-one-to-how-to-handle-interest-on-deferred-payments#main-content) [![TMO-LO~1](https://help.themortgageoffice.com/hs-fs/hubfs/TMO-LO~1.png?width=200&height=65&name=TMO-LO~1.png)](https://www.themortgageoffice.com/) - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) Open main navigation Close main navigation - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) - [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new) [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new?hsLang=en) How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.themortgageoffice.com/knowledge?hsLang=en) 2. [Loan Servicing](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en) 3. [Loan Files](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en#loan-files) October 9, 2026 # How to defer all or part of borrower’s scheduled payment? ## This article provides ideas & considerations for deferring all or part of borrower’s scheduled payment. TIP: The comments below assume that the box under "Add Negative Amortization to" that says "**Unpaid Interest**" is checked ![square-check-solid](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square-check-solid.png?width=15&height=15&name=square-check-solid.png).  TIP: Make sure the box under "Unpaid Interest Handling" that says "Include when Calculating Interest" is not checked ![square](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square.png?width=15&height=15&name=square.png) (see [How to edit options in loan terms](https://app.hubspot.com/knowledge/6371232/edit/125642665869)). TIP: Make sure you test and understand the difference between the Periodic Interest Accrual Method settings (found [here](https://app.hubspot.com/knowledge/6371232/edit/125642665869)), and how each setting **affects** how interest is accrued.  **OPTION 1:**  - Accept reduced payment, i.e., **50%**, and handle as a **partial** payment. - This plan requires the borrower to catch up **all** deferred installments. - When the payment comes in, the short payment is applied to **Reserve**. - When the next payment comes in, if it is enough to make a full payment, it is **combined** with the amount in Reserve and posted as a Regular Payment. - Interest Paid to Date and Next Due Date do not roll forward until the **remainder** of the installment is received and posted as a Regular Payment. TIP: We have a Smart View available that displays loans where the amount in reserve is **equal to** or **greater than** the loan’s Total Regular Payment. **OPTION 2:**  - Accept less than the scheduled payment, i.e., **50%**, and post it as a **Regular** Payment. - If the reduced payment does not cover **all** the interest owed, it will be posted as an increase to unpaid interest. - Check the **settings** in [Loan Term Options](https://app.hubspot.com/knowledge/6371232/edit/125642665869) for interest handling on reduced payments. - Interest Paid to Date and Next Due Date are rolled forward **immediately**. - When payments resume, they would apply to the unpaid interest balance **first**. **OPTION 3:**  - **Defer** or skip the entire payment, i.e., the amount received is **$0.00**. - The calculated interest is negatively amortized to **Unpaid Interest**. - Check **settings** in [Loan Term Options](https://app.hubspot.com/knowledge/6371232/edit/125642665869) for interest handling on reduced payments. - Interest Paid to Date and Next Due Date are rolled forward **immediately**. - When payments resume, they would apply to the unpaid interest balance **first**. **OTHER CONSIDERATIONS:** - **ACH** Processing considerations: - Posting payments manually does **not** move or roll forward the ACH Next Debit Date. - For skipped or deferred payments posted manually, change the **ACH Next Debit Date** (see [How to set up borrower ACH information](https://help.themortgageoffice.com/knowledge/setting-up-borrower-ach-information?hsLang=en)). - Using the Next Revision date may stop the processing of ACH Automated (see [below](https://help.themortgageoffice.com/knowledge/supplement-one-to-how-to-handle-interest-on-deferred-payments#ach)). - **COVID-19** loan considerations: - Consider using the **Loan Code** to identify the loan. - This field is an optional field in the **Loan Terms Detail** screen (see [How to add or edit details in the terms of a loan](https://help.themortgageoffice.com/knowledge/how-to-add-or-edit-detailed-information-in-terms-of-a-loan?hsLang=en)). - Add **Category** for COVID-19 while entering Loan Code. - This field is available in the Loan Grid. - This field is “**selectable**” in Selection Criteria in the Portfolio Report in Custom Reports. - This field could be used for **other** purposes as well to identify certain loan groupings. - Consider using **Categories** to identify the loan. - Almost all reports can be run by **Categories**, such as Loan Interest Accrual Report, Loan Balances Reports, Late Report, etc. - Smart Views can be created by Categories. - Letters can be produced for Smart Views. - **Revision** date considerations: - The next Revision Date is an optional date in the **Loan Terms Important Date** area (see [How to add or edit general terms of a loan](https://app.hubspot.com/knowledge/6371232/edit/122351274254)). - When a loan’s Next Due date reaches the Next Revision Date, the loan is **not** available for ACH, but it is listed on an Exception Report. Click [here](https://help.themortgageoffice.com/knowledge/how-to-defer-borrower-payments-in-tmo-or-tlo?hsLang=en) for the original article and [here](https://help.themortgageoffice.com/knowledge/treatment-of-servicing-fees-and-sold-rate-interest-differential-distributions-on-deferred-payments?hsLang=en) for an additional article regarding this subject. 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