Forbearance – A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.
Basically, forbearance allows the borrower to put a temporary hold on his or her monthly payments, usually for up to one year. Forbearance is common for unemployed people with outstanding student loans.See also: Bankruptcy, Credit, Creditor, Credit Rating, Credit Risk, Impaired Credit Sources=Sources | 131072
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