Which of the following does NOT occur in a forbearance?

A forbearance is a temporary agreement between a borrower and a lender that allows the borrower to pause or reduce mortgage payments for a limited period. During this time, the borrower is typically given a chance to improve their financial situation without the immediate threat of foreclosure.

In the context of this scenario, the choices related to forbearance—work out, deferment, and moratorium—are all aspects that can occur as part of a forbearance agreement. A "work out" often refers to negotiations between the borrower and lender to modify the loan terms, "deferment" involves postponing payments that will be due later, and a "moratorium" is a formal decision that allows the borrower to temporarily suspend payments.

In contrast, a foreclosure sale does not occur during a forbearance. Foreclosure is the legal process where a lender attempts to recover the balance of a loan by forcing the sale of the property used as collateral when a borrower defaults. Since forbearance serves to prevent immediate foreclosure by offering the borrower relief, it is clear that a foreclosure sale would not happen in this situation. Therefore, recognizing that a forbearance is designed to help borrowers avoid foreclosure is crucial in understanding why this is the correct answer.