Forbearance Agreement

    

FORBEARANCE AGREEEMENT

{Borrower Name}, (hereafter "Borrower,") and {Lender}, (hereafter "Lender,") hereby come to a forbearance agreement, which shall apply only to {Loan/Credit Agreement} made on {date}. The original parameters to {Loan/Credit Agreement} were {conditions, rates, down payment, and principal amount}. Both parties now verify and confirm that the following statements are true and factual:

• Borrower has requested loan modification and forbearance due to temporary financial hardship. Borrower has provided proof [see {Attachment Number}] that the financial hardship is short-term and shall not exceed {number} days.
• Although the Lender is under no obligation to do so, the Lender has agreed to modify the loan in the following way: {Modification to loan}.
• During the forbearance period, the Lender will not take any action or make any defaults regarding collection, payment, or interest on the original agreement. All required activity will be suspended for the duration of the forbearance period.
• The Lender requires {additional collateral, higher interest rates, etc.} as of the {date} in recompense for the loan modification.
• The forbearance and loan modification will be in effect until {date} unless an extension is agreed upon in writing by both parties. This forbearance agreement has no retroactive qualities and does not apply to any future agreements made in regard to the original loan or credit agreement. All previous debts and interest accrued will continue to apply.
• No further modifications or forbearances concerning the original credit or loan agreement will be inferred or implied by this agreement. If any portion of this agreement is deemed illegal or inadmissible, its dismissal will not affect the terms of the original agreement.
• This document has been prepared mutually by both the Borrower and the Lender, and accurately reflects both parties' intentions, requests, and interests.

(Borrower Signature)

(Lender Signature)

(Witness Signature)

(Date)

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