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Ron Drescher, an attorney specializing in bankruptcy and commercial litigation, explains forbearance agreements, typically arising when a borrower defaults on a loan. These agreements involve a borrower requesting a bank to halt foreclosure actions or asset seizures. In return, the borrower may propose making payments or adding collateral to secure the bank's position. The bank, in turn, agrees to forbear from proceeding with foreclosure, repossession, or legal judgments. However, banks often impose additional terms as part of the forbearance agreement.
