No. While a borrower’s delinquency does increase during a forbearance plan, the delinquency does not necessarily need to be resolved via a lump-sum payment (a reinstatement) after the forbearance plan is complete. Fannie Mae’s workout option hierarchy provides several options for resolving the delinquency if the borrower can’t afford a reinstatement, including a repayment plan, a COVID-19 payment deferral, and a Fannie Mae Flex Modification.
See below for more information on COVID-19: