Definition
A temporary agreement in which a lender allows reduced or suspended payments during hardship.
Example
Six months of forbearance was followed by a partial claim moving the arrears to the end of the loan.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Forbearance mean in real estate?
A temporary agreement in which a lender allows reduced or suspended payments during hardship.
How is Forbearance used in practice?
Six months of forbearance was followed by a partial claim moving the arrears to the end of the loan.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.