Forbearance Agreements

A forbearance agreement is a formal arrangement between a borrower and a lender where the lender agrees to temporarily reduce, delay, or suspend loan payments due to the borrower’s financial hardship. This doesn't forgive the debt but provides relief for a specified period, allowing the borrower time to improve their financial situation. Typically, the agreement outlines the new payment terms and conditions for resuming regular payments later. Forbearance can help prevent default or foreclosure, giving the borrower breathing space while maintaining the loan’s overall terms.