Forbearance Contract

The Forbearance Contract under USA law is a legal template that defines the terms and conditions for a creditor or lender to temporarily suspend or reduce the required loan repayments by a borrower who is facing financial hardship or difficulties. This agreement is typically used as an alternative to foreclosure or other collection actions by providing the borrower with temporary relief. The template outlines the specific terms and conditions agreed upon by both parties, including the duration of the forbearance period, the reduced payment amounts (if applicable), any additional fees or charges, and the consequences for non-compliance. It also outlines the rights and obligations of both the borrower and the lender during the forbearance period, ensuring that both parties are protected and bound by the agreed terms. This legal template adheres to the laws and regulations governing forbearance agreements in the United States and serves as a standard document to formalize the agreement between the parties involved.