Back to Glossary
January 19, 2023
"Forbearance" refers to the temporary suspension of loan payments, most commonly for a mortgage or a student loan. Lenders and other creditors grant forbearance as an alternative to placing property into foreclosure or leaving the borrower in default on the debt. Because the losses incurred by foreclosures or bankruptcies often fall on them, loan holding firms and their insurers are usually prepared to negotiate forbearance agreements.
Related Topics
Navigating the Process of Mortgage Modification
What Is Non-Recourse Lending?
What Is a Short Sale?
When Is the First Mortgage Payment Due?
What Does Foreclosure Mean?
What Is a HELOC Loan?
Loan Default
Financial Considerations (For First-Time Home Buyers)