Contract Glossary
Forbearance
Definition
An agreement where a creditor temporarily holds off on enforcing a right — typically the right to demand payment or take legal action. It's a pause button, not a forgiveness button. The underlying obligation usually remains.
In Practice
You'll encounter forbearance in loan agreements and mortgage workouts. If you can't make your mortgage payments for three months, your lender might agree to a forbearance period where they won't foreclose — but the missed payments still need to be made up later. Get any forbearance agreement in writing with clear terms on when and how you'll catch up.
Common in these contract types
Related terms
Frequently asked questions about forbearance
No. Forbearance means the creditor agrees to wait — you still owe the money. Forgiveness means the debt is actually canceled. During COVID-19, many mortgage forbearance programs were mistakenly understood as forgiveness. Borrowers still had to repay the deferred amounts.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.