In this form, the lessee is in default and lessor has brought an eviction action against lessee. Pursuant to two cash payments, lessor agrees to release lessee (with some exceptions) from the lease, covenants not to sue for monetary damages, and drop the eviction action.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A Phoenix Arizona Forbearance Agreement with Release Provision is a legally binding document designed to outline the terms and conditions under which a lender agrees to temporarily suspend their right to enforce foreclosure action against a delinquent borrower in Phoenix, Arizona. This arrangement offers a viable solution for borrowers who are experiencing financial hardship and are struggling to make their mortgage payments. The agreement typically includes the following key components: 1. Parties Involved: The agreement identifies the parties involved, namely the lender or mortgagee and the borrower or mortgagor. Both parties must be clearly named along with their contact information. 2. Purpose: The document explicitly states that the purpose of the agreement is to provide the borrower with relief during a specified period, allowing them to regain financial stability and avoid foreclosure. 3. Terms of Forbearance: The agreement outlines the precise terms of the forbearance granted by the lender. This may include a temporary suspension or reduction of monthly mortgage payments for a specified period, typically ranging from three to twelve months. 4. Release Provision: The primary distinction of a Phoenix Arizona Forbearance Agreement with Release Provision is the inclusion of this clause. This provision states that once the borrower fulfills their obligations as agreed upon, the lender releases any claim to the borrower's property. The release provision helps restore the borrower's peace of mind, ensuring that they will not face foreclosure once the forbearance period is completed. 5. Obligations and Conditions: The agreement details the conditions the borrower must meet during the forbearance period and states that they must adhere to a revised payment plan or other agreed-upon terms. It may also prohibit the borrower from accruing additional debt during the forbearance period and require them to maintain insurance and pay property taxes. 6. Mutual Benefits: The agreement emphasizes that both parties benefit from this arrangement. The lender avoids costly foreclosure proceedings, potential legal complications, and the possibility of obtaining a property with depreciated value. The borrower receives temporary financial relief, the opportunity to stabilize their finances, and the chance to retain ownership of their property. It is important to note that there may be variations of Phoenix Arizona Forbearance Agreements with Release Provisions, depending on the lender, borrower, and specific circumstances. Some agreements may incorporate additional clauses related to loan modifications, repayment plans, or even principal forgiveness. If you're considering entering into a Phoenix Arizona Forbearance Agreement with Release Provision, consult with a qualified attorney or seek professional advice to ensure that you fully understand the terms and consequences of such an agreement given your unique situation.A Phoenix Arizona Forbearance Agreement with Release Provision is a legally binding document designed to outline the terms and conditions under which a lender agrees to temporarily suspend their right to enforce foreclosure action against a delinquent borrower in Phoenix, Arizona. This arrangement offers a viable solution for borrowers who are experiencing financial hardship and are struggling to make their mortgage payments. The agreement typically includes the following key components: 1. Parties Involved: The agreement identifies the parties involved, namely the lender or mortgagee and the borrower or mortgagor. Both parties must be clearly named along with their contact information. 2. Purpose: The document explicitly states that the purpose of the agreement is to provide the borrower with relief during a specified period, allowing them to regain financial stability and avoid foreclosure. 3. Terms of Forbearance: The agreement outlines the precise terms of the forbearance granted by the lender. This may include a temporary suspension or reduction of monthly mortgage payments for a specified period, typically ranging from three to twelve months. 4. Release Provision: The primary distinction of a Phoenix Arizona Forbearance Agreement with Release Provision is the inclusion of this clause. This provision states that once the borrower fulfills their obligations as agreed upon, the lender releases any claim to the borrower's property. The release provision helps restore the borrower's peace of mind, ensuring that they will not face foreclosure once the forbearance period is completed. 5. Obligations and Conditions: The agreement details the conditions the borrower must meet during the forbearance period and states that they must adhere to a revised payment plan or other agreed-upon terms. It may also prohibit the borrower from accruing additional debt during the forbearance period and require them to maintain insurance and pay property taxes. 6. Mutual Benefits: The agreement emphasizes that both parties benefit from this arrangement. The lender avoids costly foreclosure proceedings, potential legal complications, and the possibility of obtaining a property with depreciated value. The borrower receives temporary financial relief, the opportunity to stabilize their finances, and the chance to retain ownership of their property. It is important to note that there may be variations of Phoenix Arizona Forbearance Agreements with Release Provisions, depending on the lender, borrower, and specific circumstances. Some agreements may incorporate additional clauses related to loan modifications, repayment plans, or even principal forgiveness. If you're considering entering into a Phoenix Arizona Forbearance Agreement with Release Provision, consult with a qualified attorney or seek professional advice to ensure that you fully understand the terms and consequences of such an agreement given your unique situation.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
