To Forbear or not to Forbear…that is the question

To Forbear or not to Forbear…that is the question

By Ann Hambly

The true definition of Forbearance is “a temporary postponement of mortgage payments. Forbearance is a form of repayment relief granted by the lender or creditor in lieu of forcing a property into foreclosure.”

Did you know that a forbearance per this definition is not something a CMBS servicer can/will approve? CMBS servicers are required to keep the bondholders current every month, so they will not approve a modification where no payments are made from the borrower.

The term forbearance is used in a CMBS loan as another word for modification. A forbearance request to a servicer must include payment terms just as a modification would. Asking for a forbearance alone from a servicer will almost always end up with a “NO”.