Forbearance Agreement Definition


Forbearance agreement is an agreement on the part of the lender to withhold their right to claim a property whose mortgage is in arrears if the delinquent borrower takes approved steps to bring back mortgage payments on track within specified period of time.

Signing a forbearance agreement is one way to put off foreclosure. It is an arrangement between the borrower and lender that provides a plan to help borrower cope with delinquency. Usually, a lender will agree to forbearance if the borrower is able to make at least 1 mortgage payment and the remaining mortgage payments due are rescheduled and added to expected mortgage payments for the next 24 months.

The amount that the borrower owes accrues interest during a forbearance agreement and the borrower is responsible to pay it along with missing payments.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.8/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: