Another loan mod: your thoughts are welcome

[Gabe K.]

Notes fans,

I am holding NPN on a nice house in a great neighborhood (not that it matters all the time) where the borrower has equity. Info:

MV: $125k

Prin + arrears = $103k

Rate: 9.90%

Pmt: $765/mo.  Taxes paid.

Borrower had several hardships and says she can start making her regular payment again.  I am getting her financials but I believe her for now.  I even received several of her monthly payments that were in suspense as the previous lender wouldn't accept them. Also, she is in KY and is applying for HHF.  

My goal is to get her current and then have her refi into a lower rate loan.  Would you just forbear and then defer the arrears until she refis? How would you structure it?