What does forbearance involve?

Forbearance involves the lender refraining from taking legal action against a borrower who is experiencing financial difficulty and is unable to make mortgage payments on time. This temporary relief allows the borrower more time to regain their financial footing without the immediate threat of foreclosure or other legal proceedings. During forbearance, the loan agreement may be modified to allow for reduced payments or a temporary suspension of payments, making it a supportive option for borrowers facing hardships.

The other options do not accurately define forbearance. Taking immediate legal action on a delinquent loan represents an adversarial approach that contradicts the purpose of forbearance. Requesting a lower interest rate is related to loan modification or negotiation but does not pertain to the concept of forbearance itself. Defaulting on a mortgage implies a failure to meet the loan obligations, which is a situation that forbearance seeks to prevent by providing temporary relief before reaching that stage.