What Is a Mortgage Forbearance Agreement?
A mortgage forbearnce agreement is an agreement made between a mortgage lender and a delinquent borrower. In this agreement, a lender agrees not to exercise its legal right to foreclose on a mortgage, and the borrower agrees to a mortgage plan that will—over a certain time period—bring the borrower current on their payments.
The coronavirus outbreak triggered forbearance help beginning March 18, 2020. Legislation and policies in the wake of the 2020 economic crisis have sought to offer relief to homeowners struggling to make mortgage payments since then.