What is a forbearance agreement?

Definition

A forbearance agreement is one way to prevent foreclosure or default. A forebearance agreement is an arrangement to postpone a borrower’s monthly payment for a limited and specified time period. The loan continues to accrue interest during a forbearance. A forbearance request must be approved by your lender. Most lenders are willing to enter into such an agreement if the borrower can pay at least 50% of the mortgage or loan arrearage or 1 full months payment and is willing to pay the remainder in 24 months.

Posted in: Foreclosure Help