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Forbearance
Updated
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.
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