Forbearance Agreement Must be in Writing and Signed

In a recent case, American First Federal Inc., v. Trugon Properties, Inc., 50 Fla.L.Weekly D1419f (Fla. 4th DCA 2025), a borrower, through a bench trial, prevailed on an argument that its lender forbeared from foreclosing on the mortgage based on an oral loan modification / forbearance agreement. The lender appealed arguing that any agreement between the borrower and lender where the lender is lending or forbearing the repayment of money must be in writing and signed by the lender and borrower under the Banking Statute of Frauds. See Fla. Stat. s. 687.0304. The lender prevailed on appeal: “Accordingly, as the alleged oral forbearance agreement is neither in writing nor signed by all parties, the agreement is unenforceable under the Banking Statute of Frauds.”

If you are entering into an agreement to forbear the repayment of money, have it in writing and signed by the borrower/debtor and lender/creditor. In fact, this rationale should extend to all “oral agreements.” Get your agreements in writing as oral agreements can become hard to prove, are he said/she said, are never agreed on after-the-fact, and can be unenforceable due to the statute of frauds.