A temporary pause or reduction in mortgage payments, granted by the lender when a borrower faces financial hardship.
Full Definition
Forbearance is an agreement between the borrower and servicer to temporarily pause or reduce mortgage payments due to a documented hardship — job loss, illness, natural disaster, or other financial crisis. The missed payments are not forgiven — they must be repaid after the forbearance period ends, either through a lump sum, repayment plan, loan modification, or deferral added to the end of the loan. Forbearance is not foreclosure and does not automatically damage credit, though how it's reported varies by servicer and loan type. Borrowers should contact their servicer as early as possible to discuss options — servicers are generally required to offer loss mitigation before initiating foreclosure.
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