This form is a deed of trust modification. It is to be entered into by a borrower, co-grantor, and the lender. The agreement modifies the mortgage or deed of trust to secure a debt described within the agreement. Other provisions include: renewal and extension of the lien, co-grantor liability, and note payment terms.
Illinois Change or Modification Agreement of Deed of Trust is a legal document used when parties involved in a deed of trust wish to alter or amend the terms and conditions of the original agreement. This agreement allows the borrower, lender, and any other interested parties to officially modify the existing terms of the deed of trust, ensuring the agreement aligns with the new agreed-upon terms. In Illinois, there are typically two common types of Change or Modification Agreements associated with a Deed of Trust: Extension and Modification Agreement and Subordination Agreement. 1. Extension and Modification Agreement: This type of agreement is utilized when the borrower and the lender agree to extend the repayment period or alter other terms of the original deed of trust. For example, if the borrower is facing financial hardship, they may negotiate an extension to provide them with additional time to repay the loan. This agreement outlines the updated terms, such as the new maturity date, interest rate revisions, changes in payment amounts, and any other modifications agreed upon. 2. Subordination Agreement: A Subordination Agreement is utilized when multiple liens or encumbrances exist on the property. This agreement allows for the rearrangement of the priority of these liens, ensuring one lien takes precedence over the others. For instance, if the property owner wishes to obtain a home equity loan, they may need the existing deed of trust to be subordinated, giving the new lender first position. This agreement outlines the new lien order, clarifying the rights and priorities of each lender involved. When entering into an Illinois Change or Modification Agreement of Deed of Trust, it is crucial to include specific details such as the original parties involved in the deed of trust, the current date, and a reference to the original recorded document. Additionally, the updated terms and conditions should be clearly outlined, including any changes made to the interest rate, maturity date, repayment amount, or other modifications. It is important to note that executing a Change or Modification Agreement of Deed of Trust requires the consent of all parties involved, including the borrower, lender, and any other affected lien holders. Before signing any modification agreement, it is advisable to consult with legal counsel or a qualified real estate professional to ensure all legal requirements are met and the interests of all parties involved are protected. In conclusion, an Illinois Change or Modification Agreement of Deed of Trust is a legal document used to modify or amend the terms of an existing deed of trust. The two common types are Extension and Modification Agreement and Subordination Agreement. These agreements allow for changes to be made to repayment terms or the rearrangement of lien priorities, respectively. It is crucial to ensure all parties involved consent to the modifications and consult with legal professionals to navigate the legal complexities of these agreements.
