With a forbearance agreement, your bank agrees to hold back on its legal right to exercise foreclosure on you. They do this by coming up with a plan to bring you current on your mortgage payments after giving you some kind of a breather period.

In Forbearance, your mortgage payments are either reduced or suspended for a time agreed on by your lender. After the Forbearance period, you will be expected to resume making old payments plus make some additional partial payments to cover the arrears and eventually get the loan current.

Banks may stipulate that you make a single, lump sum payment by a given date to cover the missed payments. The mortgage company may be willing to grant forbearance to persons whose incomes have been reduced temporarily for a number of reasons such as job loss, unpaid mandatory leave, illness or other emergencies.

Before asking for such a loan modification, you should be ready to demonstrate your good-faith efforts to pay your mortgages and other bills and to reduce expenses. This will only do more good than harm to your credit and therefore help you gain the confidence of your mortgage company. 

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