A New York trial judge has found a foreclosure forbearance agreement to be unconscionable and thus employed its equitable powers to rescind it. Following the borrower’s default, the borrower and lender entered into a forbearance agreement by which the lender agreed to forbear from foreclosing provided that the borrower made 29 monthly payments, after which the balance of the mortgage loan was due and, if not paid, the lender could foreclose. The court found that the forbearance agreement was drafted by the lender and signed by the borrower who was not represented by counsel. More importantly, the court found that the forbearance agreement provided the borrower with “virtually no benefit” and therefore rescinded it as being unconscionable. Rossrock Fund II LP v. Arroyo, No. 10287/09 (N.Y. Sup. Ct. Kings Co. Jan. 9, 2012).