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.
Mortgage relief refers to the reduction or elimination of mortgage debt on a property, frequently through the assumption of mortgage by another party or debt retirement. In specific transactions like tax-free exchanges, mortgage relief can trigger taxable gains.
