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.
Recasting a debt refers to the process of adjusting the terms of an existing loan arrangement, often undertaken to prevent default or alleviate financial hardship. This can include modifying the payment schedule, extending the loan term, or lowering the interest rate.
