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Ron Drescher, an attorney specializing in bankruptcy and commercial litigation in Maryland, Virginia, Delaware, and Pennsylvania, discusses forbearance agreements. These agreements typically arise when a borrower defaults on a loan, prompting the borrower to request the bank to halt foreclosure, asset seizure, or legal actions. To negotiate forbearance, the borrower may agree to make payments or add collateral to secure the bank's interests. In return, the bank refrains from foreclosure or repossession actions. Banks often impose additional conditions as part of the forbearance agreement.