Forbearance

Forbearance is the act of refraining from enforcing a debt or obligation, often allowing a borrower additional time to meet their commitments without facing penalties. In the context of loans or mortgages, a lender might agree to forbearance when borrowers are experiencing financial hardship, postponing payments or reducing the amount owed temporarily. This agreement can help borrowers avoid default and provide a breather as they work to stabilize their finances. It's important to note that during forbearance, interest may continue to accrue, and the total debt may increase.