NewRez's payment skip program and how it works

NewRez, which services mortgages under brands including Shellpoint Mortgage and other loan portfolios, does offer payment deferral options for borrowers facing temporary hardship — but "skip a payment" is not quite how it works. When you defer a payment with NewRez, you are not erasing the payment; you are moving it to the end of your loan. The missed payment gets added to your loan balance, and you resume regular payments after the deferral period ends.

NewRez handles payment deferrals through its loss mitigation department, which reviews requests on a case-by-case basis. The program is designed for borrowers who have experienced a temporary income disruption — a job loss, medical emergency, or similar event — rather than a permanent change in circumstances. If you are behind on payments already, NewRez may still work with you, but the process and timeline differ from a preventive deferral.

Key Takeaways

  • NewRez defers payments rather than canceling them, adding the skipped amount to your loan balance at the end of the loan term.
  • You request a deferral through NewRez's loss mitigation department, which reviews your situation and decides whether to approve it.
  • Deferrals typically last one to three months, though the exact length depends on your loan and circumstances.
  • You will need to document the hardship — a termination letter, medical bills, or proof of reduced income — to support your request.

How to request a deferral from NewRez

Contact NewRez's loss mitigation team directly. The phone number appears on your mortgage statement or you can reach the servicer through the customer service line on your loan documents. When you call, explain that you are experiencing a temporary hardship and want to discuss a payment deferral. The representative will ask you to describe the situation — when the hardship began, how long you expect it to last, and whether you are already behind on payments.

NewRez will ask you to submit documentation. This typically includes a letter explaining the hardship, proof of the hardship (a termination letter from your employer, medical bills, a notice of reduced hours), and your current financial situation. Some borrowers are asked to provide recent pay stubs or bank statements. Submit these documents by mail, fax, or through your online account if NewRez offers a document upload portal.

The review process usually takes two to four weeks. During that time, continue making your regular payment if you can, or contact loss mitigation again if your situation changes. NewRez will notify you in writing whether the deferral is approved, and if so, for how many months and under what terms.

What happens after the deferral ends

When your deferral period is over, your regular monthly payment resumes. The deferred amount — the payments you skipped — is added to your loan balance. This means your loan now costs more overall because you are paying interest on the deferred amount over the remaining life of the loan.

Some borrowers ask whether the deferred payment can be repaid separately, in a lump sum, rather than added to the balance. NewRez may offer a repayment plan in certain cases, but this is negotiated individually. Ask about this option when you are approved for the deferral; do not assume it is available.

Deferral length and limits

NewRez typically approves deferrals for one to three months, depending on the loan type and your situation. If you need a longer deferral, you may be able to request an extension, though this requires another review and documentation that the hardship is ongoing.

There is no set limit on how many times you can request a deferral, but NewRez is more likely to approve a second or third request if the hardships are separate events rather than a continuing problem. If you are chronically unable to make your payment, loss mitigation may suggest a loan modification instead — a permanent change to your loan terms — rather than repeated deferrals.

Deferral versus modification versus forbearance

NewRez uses several tools to help borrowers in hardship, and they work differently. A deferral pauses payments temporarily and adds them to the loan balance. A forbearance also pauses payments but typically requires you to repay the missed amount in a lump sum or through a repayment plan after the forbearance ends — the missed amount does not automatically roll into your loan. A loan modification permanently changes your loan terms: it might lower your interest rate, extend the loan term, or capitalize the arrears (add them to the balance), and it requires a new promissory note.

NewRez may suggest one option over another based on how much you owe, how long you have been behind, and whether you can afford the payment after the hardship ends. If you are unsure which option is being offered, ask loss mitigation to explain the difference and what you will owe after the program ends.

If NewRez denies your deferral request

A denial does not mean you have no options. NewRez must provide a written reason for the denial. Common reasons include insufficient documentation, income that is too high relative to the payment, or a situation that does not meet the servicer's definition of temporary hardship.

If you disagree with the denial, you can request reconsideration. Submit additional documentation or clarify information that may have been misunderstood. You can also contact your state's attorney general's office or the Consumer Financial Protection Bureau (CFPB) to file a complaint if you believe NewRez did not follow proper procedures. These complaints do not overturn a denial, but they create a record and may prompt NewRez to review your case again.

Impact on your credit and loan terms

A deferral approved by NewRez should not be reported to credit bureaus as a missed payment, because you are not in default — you are in an approved arrangement. However, if you miss a payment before the deferral is approved, that missed payment may appear on your credit report. Once the deferral is in place and you are making payments on time again, the impact should not worsen.

The deferral does extend your loan term slightly because the deferred payments are added to the end. This means you will pay interest on that amount for longer. If you have a 25-year loan remaining and defer three months of payments, you are essentially adding three months to the life of the loan (plus interest on those three months).

Frequently Asked Questions

Can I get a deferral if I am already behind on payments?

Yes, but the process is different. If you are behind, NewRez will review whether you can catch up through a deferral, a repayment plan, or a modification. Being behind does not automatically disqualify you, but it does mean loss mitigation will look at your full financial picture to decide which option makes sense.

What if my hardship is permanent, not temporary?

A deferral is designed for temporary situations. If your income has permanently decreased or you have a permanent disability, NewRez may suggest a loan modification instead, which can lower your payment permanently rather than just pause it. Ask loss mitigation about modification options.

Do I have to pay interest on the deferred amount?

Yes. The deferred payments are added to your loan balance, and you pay interest on that balance for the remaining life of the loan. This is why a deferral costs you more overall than making the payment on time.

How long does the approval process take?

NewRez typically reviews a deferral request within two to four weeks of receiving complete documentation. If documents are missing, the timeline extends. Call loss mitigation to confirm what they have received and what is still needed.

Can I pay back the deferred amount separately instead of adding it to my loan?

This varies by loan and situation. Some borrowers can negotiate a repayment plan for the deferred amount, but it is not automatic. Ask about this option when you are approved for the deferral, and get the terms in writing.