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A forbearance agreement, repayment plan, and loan modification all offer different solutions for struggling borrowers. In a forbearance agreement, payments are reduced or suspended for a set time. A repayment plan temporarily increases monthly payments to catch up on overdue amounts. A loan modification lowers monthly payments permanently and brings the loan up to date. Forbearance offers short-term relief, while modification is a long-term solution. During forbearance, foreclosure is paused, but full payments must resume afterward.
