A deed of trust is a document which pledges real property to secure a loan, used instead of a mortgage in certain states. A deed of trust involves a third party called a trustee, usually an attorney of officer of the lender, who acts on behalf of the lender. When you sign a deed of trust, you in effect are giving a trustee title to the property, but you hold the rights and privileges to use and live in or on the property. If the loan becomes delinquent the beneficiary can file a notice of default and, if the loan is not brought current, can demand that the trustee begin foreclosure on the property so that the beneficiary (lender) may either be paid or obtain title. Unlike a mortgage, a deed of trust also gives the trustee the right to foreclose on your property without taking you to court first.
An agreement modifying a promissory note and deed of trust should be signed by both parties to the transaction and recorded in the office of the register of deeds and mortgages where the original deed of trust was recorded.
Arkansas Agreement to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of Promissory Note Secured by a Deed of Trust In Arkansas, an Agreement to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of a Promissory Note Secured by a Deed of Trust is a legal document that allows the borrower and lender to make mutually agreed-upon adjustments to the terms of their existing loan agreement. This agreement is commonly used when the parties involved wish to modify the interest rate, maturity date, or payment schedule of the promissory note, while ensuring that the loan remains secured by the property through the existing deed of trust. Keywords: Arkansas, agreement, change or modify, interest rate, maturity date, payment schedule, promissory note, secured, deed of trust. Types of Arkansas Agreement to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of Promissory Note Secured by a Deed of Trust: 1. Interest Rate Modification Agreement: This type of agreement specifically focuses on modifying the interest rate specified in the original promissory note. It allows the lender and borrower to adjust the interest rate either up or down, depending on the current market conditions or any other mutually agreed-upon factors. 2. Maturity Date Extension Agreement: This agreement emphasizes extending the maturity date of the promissory note. It may occur when the borrower is unable to meet the original repayment deadline and seeks additional time to fulfill their obligations. This extension can be beneficial for both parties, providing the borrower with more time to repay the loan while preserving the lender's security interest. 3. Payment Schedule Modification Agreement: This agreement aims to modify the payment schedule outlined in the original promissory note. It allows the parties to adjust the frequency or amount of payments to better suit their current financial circumstances. This modification can help borrowers who are experiencing temporary financial difficulties or seek more flexibility in repaying the loan. It is important to note that the specific terms and requirements of these agreements may vary depending on the individual circumstances, lender policies, and applicable state laws. Seeking legal advice from a qualified attorney is always recommended when considering or drafting such agreements to ensure compliance with Arkansas regulations and protect both parties' interests.
