A Forearance Agreement is a Payment Plan arrangement with your loan servicer for you to become current within a twelve month period.
This is appropriate if your interest rate is reasonable and your mortgage payment is affordable. Payment Plans are effective when life?s circumstance (i.e. illness, short-term job loss, or personal issues) have created a short term financial setback.
The past due amount is spread as an additional payment over a number of months and on completion you would be current. While Lenders/Servicers often advocate for this, it will not prevent an eventual foreclosure if your existing mortgage payment is unaffordable or will become unaffordable.