Can a forbearance agreement stop or delay the default of a home loan?

A forbearance agreement is an agreement you make with a lender wherein you are able to temporarily change your mortgage payment. In most cases, a forbearance agreement allows you to stop making payments for a set period of time. In other situations, a lender may temporarily lower or modify your payment, but this may not be specifically referred to as "forbearance" as forbearance typically means a stop in payment.

A forbearance agreement can help you to avoid being considered in default on your home loan. You enter into default when your payment is late. If your payment is postponed because you convince your lender to offer you temporary forbearance, then you will not technically be in default.

Your lender may offer you forbearance if they believe you are facing temporary problems paying the mortgage but that you'll be able to get things back on track. You'll still have to pay your mortgage back eventually, but it is a win-win because the lender will get the full amount of his money due and you won't get kicked out of your home during a bad time.

If you hope to convince your lender to agree to forbearance, you may wish to consult with an attorney who specializes in foreclosure. Your lawyer can help you negotiate a deal with the lender and can maximize your chances of being successful at being granted forbearance.