Are there any homes in the the forest? I don't what to know where they would be, just if they exist. I'm talking about a player's house with a deed and all.

No.

Ahh, too bad. I pictured my mage living out in the forest as a hermit

You still can, but there are no 'owned' ones.

As always, if you're on PC, you'll get sick to select a home (between the hundred good ones that exists).

There's many PC mods that provide lots of forest homes. The Frostcrag DLC provides an isolated mage tower, but is not available for the Playstation.

Mara

there are several campsites with no inhabitants that would be perfect for a hermit.

This isn't really in a forest, but it's north of Cheydinhal, there are some drug dealers there that respawn but I think that the chest in the big roofed tent is non-respawning, meaning your stuff won't dissapear when placed in the chest, also the bed is free to sleep in, it may not be luxury, but it's a roof over your head, and a fire to keep you warm.

http://www.uesp.net/wiki/Oblivion:Walker_Camp

Those guys are always friendly to me. They have never taken my stuff from that chest.

http://www.uesp.net/wiki/Oblivion:Houses might help, there is a list of 'free' places to live at the bottom of the page.

You can always (sort of) take over Lord Drads Estate after the quest

Hehe this reminds me of the time I tried using the isolated house ?south? of Skingrad as a home, but I wouldn't recommend it since it tends to explode if you do the MQ (an oblivion gate spawns on top of it) and you lose everything inside it unless you coc to it.

There is also an unmarked camp west of Anutwyl. It is not occupied by anyone, has a bedroll, tent, and I believe a sack. I am not sure if the bag respawns though, so use that at your own risk.

http://www.uesp.net/wiki/Oblivion:Bogwater is very isolated. An Imperial Forester sometimes patrols the area, a friend for your hermit?

Great info! Thanks for all the help.