If mortgage borrowers are unable to meet their repayment terms, lenders may decide to cancel. To avoid enforced execution, the lender and borrower can enter into an agreement called “indulgence.” Under this agreement, the lender delays its right to enforced execution if the borrower can obtain its payment plan on a specified date. This period and payment schedule depend on the details of the agreement agreed by both parties. The term “indulgence” is treated in different countries with different names. The standards of a silos agreement are also different. In Australia, for example, banks offer “variations in hardness” to borrowers who are struggling financially. Borrowers can ask their lenders to change the terms of their loans. The GSE payment guidelines, published in April 2020, which clarified the terms of COVID`s leniency plans 19. The announcement stated that full payment of arrears was an option for reintroducing consumers, but that it was never required to choose a flat-rate option. He confirmed the four full repayment options, a repayment plan over time, a deferral to defer payments at the end of the loan, or a loan modification for tougher cases.
The guidelines, which face challenges for homeowners, would begin with shorter schedules, but these could be extended by up to 12 months after a reassessment of consumers` financial situation. The GSEs also waive late charges and suspend seizures and evictions until May 17, 2020.  A lender who grants leniency waives the right to the remuneration of securities under its contract or contract with the borrower. This is done to help the borrower return to a strong financial situation, as well as a better position of the lender to achieve its security if the borrower does not. The borrower does not escape its obligations by accepting the agreed additional amount and/or the agreed terms. At the end of the agreed leniency period, the loan account returns to its original form. In many cases, at the end of the leniency period, the difference between the amount of leniency granted and the full refund (which has been omitted) is recalculated over the remaining term, and the customer`s new repayment is based on the current balance of credit, interest rate and duration.