Forbearance
A temporary pause or reduction in mortgage payments granted by the servicer during a hardship. The missed amount is not forgiven and must be repaid later through a lump sum, repayment plan, deferral or modification.
Also called: mortgage forbearance, payment pause
Related terms
A permanent change to a mortgage's terms, such as a lower rate, longer term or added balance, to make payments affordable after a hardship. It is negotiated with the servicer and avoids refinancing.
The legal process a lender uses to take and sell a property after the borrower defaults. Some states require a court case (judicial foreclosure), while others allow a faster non-judicial sale under a deed of trust.
When one side fails to meet its obligations under a contract or loan. In a purchase, the contract spells out remedies, which often include the seller keeping the earnest money.
A sale where the lender agrees to accept less than the amount owed on the mortgage. It needs lender approval, can take months, and is usually an alternative to foreclosure.
A loan used to buy real estate, with the property pledged as security. If the borrower stops paying, the lender can foreclose. Some states use a deed of trust instead of a mortgage document, but people call both a mortgage.