Forbearance Agreement
/ˌfɔːrbɛrəns əˈgriːmənt/
Definitions
- (n.) A contract between a lender and borrower in which the lender agrees to temporarily refrain from exercising its legal right to collect debt or enforce foreclosure, usually to allow the borrower more time to repay.
The parties entered into a forbearance agreement to delay foreclosure while the borrower sought alternative financing.
Forms
- forbearance agreements
Related terms
See also
Commentary
Typically used in debt contexts, a forbearance agreement must specify terms and duration clearly to avoid ambiguity and potential disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.