forbearance

(fôr-bâr'əns)
n.

1. The act of forbearing.
2. Tolerance and restraint in the face of provocation; patience. See synonyms at patience.
3. The quality of being forbearing.
4. Law. The act of a creditor who refrains from enforcing a debt when it falls due.

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1. Lender's decision not to exercise a legally enforceable right against a borrower in default, in exchange for a promise to make regular payments in the future. For example, a mortgage lender will agree not to initiate foreclosure proceedings against a mortgagor whose loan is in arrears.

2. Temporary relief granted a bank by a regulatory agency from compliance with minimum capital requirements or other banking regulations, extended to financial institutions in economically depressed areas. Banks given capital forbearance must file a plan to restore their capital base within a specified period.

A policy of restraint in taking legal action to remedy a default or other breach of contract, generally in the hope that the default will be cured, given additional time.


Example: Because of a slowdown in the local economy, loan delinquencies increased dramatically at First Savings. Considering that most of the borrowers were long-term customers of the bank and had always honored their commitments, First Savings adopted a policy of forbearance in dealing with a default. Every effort would be made to avoid foreclosure and give the borrowers time to bring the loans up to date.

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noun

1. The capacity of enduring hardship or inconvenience without complaint: long-suffering, patience, resignation, tolerance. See accept/reject.
2. Forbearing or lenient treatment: charitableness, charity, indulgence, lenience, leniency, lenity, tolerance, toleration. See accept/reject.

n

Definition: resisting, avoidance
Antonyms: continuation, impatience, indulgence, involvement, pursual, use

This entry contains information applicable to United States law only.

Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. Act by which creditor waits for payment of debt due by a debtor after it becomes due.

Within usury law, the contractual obligation of a lender or creditor to refrain, during a given period of time, from requiring the borrower or debtor to repay the loan or debt then due and payable.

A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.

Investopedia Says:
Basically, forbearance allows the borrower to put a temporary hold on his or her monthly payments, usually for up to one year. Forbearance is common for unemployed people with outstanding student loans.

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IN BRIEF: Willingness to wait.

There is, however, a limit at which forbearance ceases to be a virtue. — Edmund Burke (1729-1797).

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For a list of words related to forbearance, see:

• Drinking Terms - forbearance: abstinence; temperance

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See words rhyming with "forbearance."