I thought the transcription/CREB step was when a memory was formed?
As for what forgetting is, well you would have to know what memory is and that is not entirely worked out. Different types of memory happen in different parts of the brain, so what exactly causes you to forget someone’s name may not be the same as what causes you to forget where an old friend lives.
Memory is a little better understood in invertebrates, specifically Aplysia californica. In aplysia memory formation is directly related to increases in the strength of specific synapses. What we would term "forgetting" is related to decreased strength of these same synapses. So if the same rules apply to humans (hahaha) then decreased synaptic fidelity in those synapses coding a memory would be the cause of forgetting (note that this is wild conjecture). This loss of synaptic fidelity could have any number of causes. The neuron could die (Alzheimer's, CJD, Dementia...), synapses that are rarely used may be removed (see Hebb's postulate), or the little elf just took a nap, there is really no telling.