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A forbearance agreement, a repayment plan, and a loan modification are all options for borrowers struggling with payments. With a forbearance agreement, payments are reduced or suspended for a set time. A repayment plan temporarily increases monthly payments to help catch up on the loan. A loan modification lowers monthly payments permanently and brings the loan up to date. A forbearance provides short-term relief, but full payments must resume at the end. During a forbearance period, foreclosure is typically not initiated, but the borrower must catch up on payments eventually.
