Finance
What is 'forbearance' in a Delaware mortgage and when is it used?
AThe lender's right to foreclose without giving notice to the borrower
BAn agreement between a borrower and lender to temporarily reduce or suspend mortgage payments during a financial hardship — with a plan to repay the missed amounts later✓ Correct
CA penalty for paying the mortgage off before the loan term ends
DA Delaware state program providing emergency mortgage assistance
Explanation
Mortgage forbearance is a temporary relief arrangement where the lender agrees to pause or reduce the borrower's payments during financial hardship (job loss, medical emergency). The missed payments are not forgiven — they must be repaid through a lump sum, repayment plan, or modification later. Forbearance became widely known during COVID-19. CARES Act provisions affected many Delaware borrowers.
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