Document background
The Forbearance Agreement Mortgage is a crucial legal instrument in Indian banking and real estate practice, typically employed when borrowers face legitimate financial difficulties in meeting their original mortgage obligations. This document becomes relevant when a borrower requests temporary relief from their regular mortgage payments due to circumstances such as business downturns, medical emergencies, or other financial hardships. The agreement demonstrates the lender's willingness to modify the original mortgage terms while maintaining their security interests and legal rights under Indian law. It carefully balances the borrower's need for temporary relief with the lender's risk management requirements, incorporating provisions that comply with RBI guidelines, the Transfer of Property Act, and other relevant Indian legislation. The document typically includes detailed terms about the forbearance period, modified payment schedules, conditions for maintaining the arrangement, and the consequences of default.
