What is a credit agreement?

What can a forbearance agreement do to my credit?

• I recently signed one with my lender and when I asked they just told me it would be better than if I just tried to make up the late payments which is what I was trying to do when they offered forbearance. When I signed, it stated that the loan would continue to be reported contractualy past due. What does this mean? I want to work to get my credit back on track and am worried that I've made it worse by signing this.

• Answer:

  Well as they told you, this will be on your credit report. Any company checking your credit will know you have a past due mortgage payment. You're very fortunate they wanted to work with you on this. A lot of lenders would have started foreclosure proceedings after the 2nd missed payment.