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.
The Indiana Forbearance Agreement — With Release Provision is a legal document that outlines the terms and conditions for a borrower and lender to temporarily suspend foreclosure proceedings or legal actions due to a default on a loan. This agreement provides an opportunity for the borrower to catch up on missed payments and avoid foreclosure, while also ensuring that the lender will receive the outstanding balance. The main purpose of the Indiana Forbearance Agreement — With Release Provision is to establish a temporary payment plan that allows the borrower to repay the delinquent amount in installments over a specified period. This agreement is typically used when the borrower's financial difficulties are temporary, such as a temporary loss of income or unexpected expenses. The key terms and conditions of the Indiana Forbearance Agreement — With Release Provision include the total amount owed, the length of the forbearance period, the monthly payment amount, and any additional fees or charges. It also includes provisions for late payments, default consequences, and the release of the borrower from any legal claims once the agreed-upon terms have been fulfilled. There are different types of Indiana Forbearance Agreement — With Release Provision that may vary depending on the lender's requirements or the specific situation of the borrower. Some common variations include: 1. Short-term Forbearance Agreement: This type of agreement allows the borrower to suspend foreclosure proceedings for a relatively short period, usually a few months. It gives the borrower time to improve their financial situation and resume regular mortgage payments. 2. Long-term Forbearance Agreement: In cases where the borrower's financial hardship is expected to last longer, a long-term forbearance agreement may be offered. This provides a more extended period, typically ranging from six months to a year, for the borrower to catch up on the missed payments. 3. Lump Sum Forbearance Agreement: In some cases, borrowers may have the option to make a lump sum payment to cover the entire delinquent amount and bring the loan current. This type of agreement allows borrowers to avoid an extended forbearance period and potential additional fees or charges. 4. Modified Payment Plan Agreement: If the borrower's financial situation has changed significantly, and they are no longer able to afford the original mortgage payments, a modified payment plan agreement may be considered. This type of agreement adjusts the monthly payment amount and extends the loan term to make it more manageable for the borrower. It is important for both the borrower and lender to carefully review and understand the terms of the Indiana Forbearance Agreement — With Release Provision before signing. Seeking legal advice or assistance is highly recommended ensuring that the agreement meets all legal requirements and protects the interests of both parties involved.
