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Forbearance, as defined by Merriam-Webster, is the act of refraining from enforcing a debt or obligation that is due. It is commonly utilized by individuals with student loans who might not have sufficient income to repay their debt. Recently, it has gained popularity in the context of mortgage payments due to economic impacts from the COVID-19 crisis. While forbearance can provide temporary financial relief, it is essential to understand that it does not eliminate the borrower’s obligation to repay the loan or the interest accrued during the forbearance period. Therefore, the relief is only short-term and borrowers must eventually resume their payments.
