A period during which lenders are unwilling to extend credit to borrowers. The term is particularly associated with the period beginning in late 2007, when the previous era of 'easy credit' came to a sudden end in the wake of the subprime lending fiasco.
Forbearance is a situation where a lender decides not to exercise its legal right to foreclose on a property when a borrower defaults. Instead, the lender opts to renegotiate the terms of the loan to offer temporary relief to the borrower.
