A special forbearance is when a borrower is granted special permission by a lender to have more time to pay back a debt. In these circumstances, a lender could have the legal authority to foreclose or call the loan due. However, instead of doing this, the obligor gives the debtor an extra amount of time to pay the funds.
Borrowers may seek special forbearance in the event of sudden financial hardship, or for other reasons. For example, a person paying back a mortgage may be let go from his or her job due to downsizing with very little warning. Perhaps, their expenses may suddenly increase if a disaster happens, such as a tornado hitting their property. In these cases, the lender may allow the debtor a special forbearance. This special forbearance may include an amended payment plan, or other negotiations that help the lender have more time to pay the money.