A temporary reduction or suspension of your mortgage payments for three or four months followed by a new repayment plan is called a:

Question

Quizplus · Accepted Answer

The temporary reduction or suspension of mortgage payments followed by a new repayment plan is known as forbearance. Option A, reinstatement refers to catching up on missed payments by making a lump sum payment. Option B, a new payment plan does not necessarily imply a temporary reduction or suspension of payments. Option D is not correct as there is a correct choice - C, which accurately describes the given scenario.

A Temporary Reduction or Suspension of Your Mortgage Payments for Three