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.
Description: A Massachusetts Forbearance Agreement — With Release Provision is a legal document that outlines an agreement between a lender and a borrower in Massachusetts. The agreement typically occurs when the borrower's loan goes into default or faces financial hardship, and the lender agrees to temporarily suspend the borrower's obligation to make regular payments. The key elements of the Massachusetts Forbearance Agreement — With Release Provision include: 1. Terms and Conditions: The agreement specifies the terms and conditions under which the lender agrees to grant forbearance to the borrower. This includes the duration of the forbearance period, the amount of reduced or suspended payments, and any interest or fees that may accrue during this time. 2. Release Provision: A unique feature of this type of forbearance agreement is the inclusion of a release provision. This provision outlines the terms under which the lender agrees to release the borrower from any further obligation or liability related to the defaulted loan once the forbearance agreement is successfully completed. 3. Repayment Plan: The agreement may outline a repayment plan to reinstate regular payments after the forbearance period ends. This plan may require the borrower to make increased payments to offset the missed payments during forbearance. 4. Duration and Termination: The forbearance agreement specifies the specific start and end dates of the forbearance period. It may also include conditions under which the forbearance agreement may be terminated, such as non-compliance with the repayment plan or continued financial hardship. 5. Rights and Obligations: The agreement outlines the rights and obligations of both parties during the forbearance period. It may include provisions such as maintaining insurance coverage on the property, providing financial information periodically to the lender, or obtaining consent for any actions related to the property. Different Types of Massachusetts Forbearance Agreement — With Release Provision: 1. Residential Property Forbearance Agreement: This type of forbearance agreement is specifically designed for borrowers facing financial hardship regarding their residential property, such as a mortgage on a primary or secondary residence. 2. Commercial Property Forbearance Agreement: This type of forbearance agreement applies to borrowers experiencing financial difficulties related to their commercial property, such as a business property or investment property. 3. Student Loan Forbearance Agreement: In Massachusetts, student loan borrowers may also enter into a forbearance agreement with a release provision. This agreement allows borrowers to temporarily suspend their student loan payments while providing a release from any further obligation upon successful completion. Note: It's important to consult with a legal professional or attorney to understand the specific terms and conditions of a Massachusetts Forbearance Agreement — With Release Provision as they may vary depending on the lenders and borrowers involved.
