It is sometimes called Wolf Forge, as it is listed as such on Hayate's World Map. It is called this because sometimes a Wolf or a Dog wanders around the buildings. There are no creatures that spawn directly inside Forgetown. However, the creatures of the forest often wander in. Forgetown is usually used as a place to rest and repair during hunts in that part of the continent. Aside from that, the settlement doesn't have much use.
To get to Forgetown, one can follow the path west from the guardhouse at the Andris Bridge, and eventually take the north path at the fork in the road. Forgetown is quite close to the bridge. Following the path south of Welif will also take one to Forgetown.