A forbearance agreement is an agreement made between a mortgage lender and a borrower who is delinquent on mortgage payments, in which the lender agrees not to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a period of time, bring the borrower current on the mortgage payments.

A forbearance agreement is not a long-term solution for homeowners who are behind on their mortgage; it is designed for borrowers who have temporary financial problems caused by unforeseen problems such as temporary unemployment or health problems.

A forbearance agreement allows for a win-win situation between a temporarily struggling homeowner and mortgage holder. When situation arise that prohibit a homeowner from making timely payments, they should contact the lending bank as soon as possible. Foreclosure proceedings cost the mortgage holder time and money that can be avoided by a forbearance agreement between the two parties.