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Mortgage Forbearance Agreement (incl. Deferral/Extension Options) Template
Put a temporary mortgage payment relief plan in writing with clear repayment, deferral, or extension terms using this Mortgage Forbearance Agreement Template.
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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: ___________________________
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Learn more about
Mortgage Forbearance Agreement (incl. Deferral/Extension Options) Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
MORTGAGE FORBEARANCE AGREEMENT TEMPLATE FAQ
What is a mortgage forbearance agreement?
A Mortgage Forbearance Agreement is a written agreement where a lender temporarily allows a borrower to pause, reduce, or delay mortgage payments due to hardship. It also sets out how missed payments will be handled afterward (repayment plan, deferral, or loan term extension).
Does forbearance mean the payments are forgiven?
No. Forbearance generally postpones payments; the borrower usually still owes the missed amounts, plus any interest or escrow changes as allowed by the loan documents and law. This template includes clear options for how the balance is handled.
What are common repayment options after forbearance?
Common options include: (1) repayment plan (pay the arrears over time), (2) deferral (move missed payments to the end of the loan), or (3) extension (extend the maturity date to spread payments). This template includes all three options.
Should escrow, taxes, and insurance be included?
Yes. Escrow can change during hardship periods. This template includes a section for escrow treatment and how shortages or advances will be handled.
Will forbearance affect credit?
It can, depending on lender reporting practices and the type of loan. Borrowers should confirm how their lender will report the arrangement. This template is a general agreement and does not guarantee credit reporting outcomes.
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