forbearance

  

Definition

Temporary relief granted by a lender (a bank, for example) by not exercising its legally enforceable right of foreclosure against a defaulting borrower. Forbearance may take the form of extra time allowed to come up with the overdue payment in return for the borrower's promise to make regular payments in the future. A forbearance is generally deemed sufficient consideration in law to make the borrower's promise of timely payments an enforceable contract.

Use forbearance in a sentence

  • John had graduated college with a huge amount of student loan debt and no job, but the lender granted him forbearance by allowing him to wait a year before starting to pay off the loan.

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  • When I fell behind on my student loan payment, my lender granted me a six-month forbearance which gave me time to pay my past due balance while temporarily suspending my monthly payments.

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  • During the Great Recession of 2008, John and Molly managed to avoid foreclosure and keep their house by asking their lender for a forbearance on their loan until Molly could get back to work.

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