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.

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