Forbearance agreement is a special type of mortgage process, held between a lender and a borrower to delay or avoid a foreclosure, a legal process according to which the lender or a creditor takes the legal action of selling the asset used as a collateral by the debtor (borrower) to recover the money lent as a loan. So the forbearance and loan restructure agreement is drafted legally by mutual understanding between both the parties to avoid the foreclosure. This is also termed as debt restructuring.
The loan restructuring is done under the supervision and assistant of a lawyer and some terms as well as some provisions of the current existing loan are also revised along with the rate of interest also to avoid default on existing loan. This is normally for temporary financial problems where a lender is taking entire control in his hands so as to maneuver the best way that serves efficiently to the lender for his benefit.
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