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Home > Stop Foreclosure > Temporary Foreclosure Solutions > Nice Lenders May Use Forbearance To Delay Foreclosure Nice Lenders May Use Forbearance To Delay Foreclosure Forbearance is the act of a creditor who refrains from enforcing a debt when it falls due. in other words, the mortgage lender is within it's rights to start foreclosure procedings against you but choses to cut you some slack, so to speak!
from Investopedia.com:
Forbearance is a postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.
Basically, forbearance allows the borrower to put a temporary hold on his or her monthly payments, usually for up to one year. Forbearance is common for unemployed people with outstanding student loans.
from about.com:
In forbearance, you are allowed to delay payments for a short period, with the understanding that another option will be used afterwards to bring the account current.
Lenders sometimes combine Forbearance with Reinstatement if you know you'll have the funds to bring your account current by a specific date.
From washingtonpost.com
Short term forebearance allows for the suspension of up to three payments, or a reduction in payments due for up to six months, to help you get back on your feet.
After the forbearance period is up, you agree to a stretched-out repayment plan covering all the payments you missed.
Long-term forbearance is the same idea as short-term forbearance, but deals with more serious delinquencies and allows suspension or reduction of payments for four and 12 months. Next :: Set Up A Repayment Plan To Avoid Foreclosure
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