When a borrower gets behind on payments to a lender, she is often given the chance to restructure that debt. After all, you can’t squeeze blood from a turnip. But such debt restructuring is often coupled with execution of a “forbearance agreement,” whereby the borrower acknowledges the validity of the debt and waives any lender liability claim she might have. If the borrower later fails to meet the new payment plan, then the lender need only sue on the forbearance agreement, without reaching back to the circumstances underlying the initial loan.… Continue Reading