forbearance

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Related to forbearances: deferment

Forbearance

The temporary suspension of loan repayments due to demonstrated financial hardship on the part of the borrower. Interest continues to accrue during forbearance and thus may extend the repayment period or cause payments to increase once they re-commence. A borrower must apply to the lender to be considered for forbearance.

forbearance

The act of restraining from exercising a right.

1. Typically encountered in leases and other contracts specifying that a forbearance by one party who fails to declare a default when entitled shall not entitle the other party to rely on future forbearances and will not constitute a waiver of any rights.

2. After a loan default, lenders will sometimes enter into formal forbearance agreements with borrowers, agreeing not to foreclose if the borrowers will agree to a new payment plan, pay all attorneys' fees associated with drafting the agreement, usually agree to a  higher interest rate and more collateral, and almost always agree to waive any and all claims against the lender.

References in periodicals archive ?
The company also pointed out that just 4% of its loans are in forbearance and that it encourages borrowers to choose a more affordable, modified repayment plan before resorting to forbearance.
If this were a 'deposit,' borrowers would either get their fees back at the end of the forbearance or the money would be applied to the loan's balance.
In an interview with Credit Union Times just prior to Sallie Mae's forbearance fee policy change, Change.
The material terms of the forbearance are as follows:
75% Notes due 2013, would agree to forbear from exercising their remedies with respect to TRCLP's failure to pay cash interest on these notes during the forbearance period (interest would continue accrue on such notes at the applicable contractual rate but will not be paid in cash and instead would be added to the principal amount of the notes).
It is intended that the forbearance arrangement become effective on March 16, 2009 and would continue in effect through December 31, 2009 unless terminated early in accordance with its terms.
Conditions to the effectiveness of the forbearance arrangement include the following minimum acceptance levels for each series of the Notes: 90% for the 3.
The Company noted that the forbearance agreement will not be binding on non-consenting holders, and non-consenting holders will not be entitled to receive the consent fee.
The extended forbearance agreement also provides that a potential lender to NTC, with whom NTC is in discussions regarding a secured credit facility, must provide its response on or before Oct.
The company and Casey are continuing their efforts to seek new equity and/or debt financing in order to recapitalize the company's and NTC's operations and to satisfy its obligations to WorldCom and First Bank, although no assurances can be given that these efforts will be successful or that the other conditions to WorldCom's and First Bank's continued forbearance will be satisfied.
If the WorldCom forbearance terminates, WorldCom could terminate providing NTC's telecommunications services, in which case NTC would be unable to continue to provide telecommunications services to its customers.
In connection with the extension of the forbearance agreements from WorldCom and First Bank, the company and Casey have established Oct.