Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is
A) a right of redemption.
B) a forbearance.
C) a short sale.
D) a workout agreement.

Question

Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is​
A) ​a right of redemption.
B) ​a forbearance.
C) ​a short sale.
D) ​a workout agreement.

Quizplus · Accepted Answer

Forbearance is an agreement between a lender and borrower to temporarily postpone or reduce payments.

Denise Borrows $90,000 from Clear Lake Credit Union to Buy