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Is there any difference between a loan modification agreement and a forbearance agreement?

April 26, 2017Agreement forbearance loan modification

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Is there any difference between a loan modification agreement and a forbearance agreement?

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Yes. A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides a short-term reprieve for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan.