Upon what condition is a borrower typically allowed a forbearance?

A borrower is typically allowed a forbearance based on a reduction in income. This situation often arises when a borrower faces financial difficulties that affect their ability to make timely mortgage payments. Forbearance is a temporary relief option that allows the borrower to pause or reduce their payments for a set period while they work to improve their financial situation. This can be due to job loss, reduced hours, or other significant changes in their financial circumstances that make it challenging to maintain regular payments.

The other options may not directly create a strong case for forbearance. The desire to sell the property does not necessarily imply an inability to pay, and market decline or interest rate increases, while they can impact financial stability, are not conditions that guarantee the borrower qualifies for a forbearance agreement. These are more about market conditions than personal financial hardship, which is the central focus for granting forbearance.