Forbearance

Definition

A temporary pause or reduction in mortgage payments for homeowners facing hardship, financial CPR for struggling borrowers.

Example Usage

During the pandemic, many homeowners requested forbearance to pause their mortgage payments.

Origin

Legal terminology meaning 'refraining from action,' adopted by lenders

Fun Fact

Forbearance doesn't forgive debt; it typically requires repayment once the agreement ends.

Source: Mortgage and finance terminology

Related Terms

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rate lock

An agreement that freezes your mortgage interest rate for a specified period while you complete the purchase. It's financial stability in an unstable world, for 30-60 days at least.

🏠 Real Estate

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blue-sky opportunity

A property or deal with unlimited upside potential and minimal apparent risk—usually too good to be true and named after the empty optimism of staring at a cloudless sky. It's what every syndicator claims they're offering before the inevitable thunderstorm.

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deed

The official legal document that proves you actually own that property you're paying a mortgage on, featuring enough archaic language to make Shakespeare jealous. This formal instrument transfers title from one party to another and gets recorded with the county, because if it's not written down in triplicate, did it really happen? It's essentially a receipt, but for houses and with more 'heretofore's.

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Advanced

Interest-Only Loan

A loan structure where borrowers pay only interest for a specified period before principal repayment begins. It's great for cash flow in the short term until the balloon payment hits and reality sets in.

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highest and best use

The most profitable legal use of a property that's physically possible and financially feasible. It's why your residential lot might be worth more to a developer than your emotional attachment suggests.

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Buyer's Agent

The agent who represents you as the buyer, though technically the broker still wants you to overpay.

🏠 Real Estate

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