Sample Forbearance Agreement

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State the property is in.

This Forbearance Agreement (the “Agreement”) is made and entered into on the date of execution by the undersigned borrower (“Borrower”) and lender (“Lender”

  1. Borrower’s Obligations. Borrower is currently in default of its obligations under the loan agreement dated [loan agreement date] (the “Loan Agreement”), by failing to make payments as required by the terms of the Loan Agreement. Borrower acknowledges and agrees that it is in default under the Loan Agreement.
  2. Forbearance. In order to provide Borrower with an opportunity to cure its default and to avoid further legal action, Lender agrees to forbear from taking any further action to collect the amounts due under the Loan Agreement, provided that Borrower complies with the terms of this Agreement.
  3. Payment Plan. Borrower agrees to make the following payments to Lender in accordance with the following schedule:

[insert payment schedule]

  1. Additional Terms. Borrower agrees to the following additional terms:

[insert any additional terms, such as a requirement for Borrower to provide updated financial information, a prohibition on incurring additional debt, etc.]

  1. Compliance with Law. Borrower represents and warrants that it will comply with all applicable laws, regulations and ordinances in connection with this Agreement.
  2. No Waiver. Lender’s forbearance from taking further action to collect the amounts due under the Loan Agreement shall not be deemed a waiver of any rights or remedies that Lender may have under the Loan Agreement or at law or in equity.
  3. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [insert state].
  4. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
  5. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

Borrower: ____________________________

Lender: ____________________________