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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
But if a borrower does not fall into one of these categories, she is also legally entitled to request a discretionary forbearance. Under a discretionary forbearance, the borrower may pause payments on her loans for any reason, or no reason at all.
While there is merit to the idea of giving borrowers facing financial difficulties the option to temporarily pause payments, the use of forbearance has extended far beyond that narrow purpose.
Figure 1: Student Loan Borrowers Using Forbearance, by Year Entered Repayment 2009 2013 Never In Forbearance 61% 32% In Forbearance for Less Than 18 Months 29% 48% In Forbearance for More Than 18 Months 10% 20% Source: Government Accountability Office.
forbearance of the tariffing requirements of Section 203 of the
Verizon and the FCC's prior holdings, forbearance from the
After more than 75,000 people asked Sallie Mae to stop charging forbearance fees to unemployed college students via an online petition, the education-focused financial services company made a compromise.
Now, Sallie Mae student loan borrowers who suspend their payments won't be required to pay forbearance fees until after they resume regular payments, the company said.
Freddie has also authorized servicers to provide a wide range of mortgage relief to storm victims, including forbearance for up to one year from the date of the disaster.
It will also be necessary for the Company to continue to receive forbearance under the Second A&R Forbearance Agreement and funding under the Fourteenth Amending Agreement.
While the Company has entered into the Second A&R Forbearance Agreement with its senior lenders, stream financing providers, and equipment financiers, as a result of the actions and inactions of the Government of Armenia there is no assurance that the Company will be able to meet its obligations under the applicable credit or loan agreements with its senior lenders, stream financing providers, and equipment financiers and that the Company will avoid further events of default as contemplated under such agreements.