Mortgage Forbearance Agreement (incl. Deferral/Extension Options) Template

This Mortgage Forbearance Agreement (the “Agreement”) is entered into as of [Effective Date] by and between:

Lender/Servicer: [Lender/Servicer Name], address: [Address] (“Lender”).
Borrower: [Borrower Name], address: [Address] (“Borrower”).

Lender and Borrower may be referred to individually as a “Party” and collectively as the “Parties.”

1. Background

1.1 Loan Documents. The Parties are parties to a mortgage loan dated [Loan Date] secured by the property at [Property Address] (the “Loan”).
1.2 Hardship. Borrower has requested temporary payment relief due to: [Describe hardship].
1.3 No Waiver of Rights. Except as stated in this Agreement, the Loan terms remain in effect.

2. Forbearance Period

2.1 Forbearance Start Date: [Start Date].
2.2 Forbearance End Date: [End Date].
2.3 Payment During Forbearance (Select One):
☐ Full payments continue (administrative forbearance only)
☐ Payments reduced to $[Amount] per month
☐ Payments paused (no monthly payment due during forbearance)
☐ Other: [Describe]

3. Amounts Covered and Accounting

3.1 Past-Due Amounts Covered (As of Effective Date).

• Principal/Interest: $[Amount]

• Escrow (tax/insurance): $[Amount]

• Fees/advances (if any): $[Amount]
  Total estimated arrears: $[Total] (subject to final account statement)

3.2 Interest During Forbearance: ☐ Continues to accrue per loan terms ☐ Modified as follows: [Terms].
3.3 Late Fees: ☐ Waived during forbearance ☐ Not waived ☐ Limited as follows: [Terms], if permitted.

4. Post-Forbearance Repayment Option (Select One)

4.1 Option A — Repayment Plan. Borrower will pay the arrears of $[Arrears Amount] in [__] installments of $[Installment Amount] beginning [Date], in addition to regular monthly payments.

4.2 Option B — Deferral. The arrears of $[Arrears Amount] will be deferred and become due at: ☐ loan maturity ☐ sale/refinance ☐ other: [Trigger], subject to loan rules and law.

4.3 Option C — Extension. The loan term is extended by [__] months, and the maturity date becomes [New Maturity Date]. Missed amounts are spread into the new schedule as follows: [Details].

4.4 Option D — Other Workout. [Describe any other arrangement.]

5. Escrow, Taxes, and Insurance

5.1 Borrower remains responsible for property taxes and insurance: ☐ via escrow ☐ paid directly.
5.2 Any escrow shortage or advances will be handled as follows: [Details].
5.3 Borrower must maintain required insurance coverage during the forbearance.

6. Borrower Certifications

6.1 Borrower certifies that the hardship information provided is true to the best of Borrower’s knowledge.
6.2 Borrower agrees to cooperate with providing documents reasonably requested for review.

7. Default During Forbearance

7.1 If Borrower fails to comply with this Agreement, Lender may end the forbearance and exercise rights under the Loan, subject to applicable law and required notices.

8. No Modification Except as Stated

8.1 Except for the forbearance terms stated here, the Loan Documents are unchanged and remain in full force.

9. Governing Law

9.1 This Agreement is governed by the laws of [State/Country].

10. Notices

10.1 Notices must be in writing and delivered to the addresses above.

11. Entire Agreement

11.1 This Agreement is the entire agreement regarding the forbearance arrangement.

Signatures

By signing below, the Parties agree to this Mortgage Forbearance Agreement as of the Effective Date.

Lender/Servicer: [Name]
Title/Role: [Title]
Date: [Date]
Signature: ___________________________

Borrower: [Full Name]
Date: [Date]
Signature: ___________________________