An agreement modifying a loan agreement and mortgage should be signed by both parties to the transaction and recorded in the office of the register of deeds and mortgages where the original mortgage was recorded. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Illinois Agreement to Modify Interest Rate on Promissory Note Secured by a Mortgage is a legal document that outlines the terms and conditions for adjusting the interest rate on a promissory note that is backed by a mortgage in the state of Illinois. This agreement allows for a modification to the original loan agreement, specifically focusing on altering the interest rate in order to accommodate the needs of both the lender and the borrower. In Illinois, there may be various types of agreements to modify interest rates on promissory notes secured by mortgages, including: 1. Fixed Rate Modification Agreement: This type of agreement allows for a fixed interest rate to be established for a specific period of time. It provides stability in monthly payments, as the interest rate remains constant over the agreed-upon term. 2. Adjustable Rate Modification Agreement: This agreement permits the interest rate to be adjusted periodically based on an established benchmark, such as the prime rate or the LIBOR index. The adjustments can occur annually, semi-annually, or even monthly, depending on the terms agreed upon by both parties. 3. Balloon Payment Modification Agreement: This particular modification agreement allows for adjustments to be made to the interest rate while also addressing a balloon payment. A balloon payment occurs when a significant portion of the loan principal remains unpaid until the final payment, resulting in a larger lump sum due at the end of the loan term. 4. Extension Agreement: In some cases, borrowers may find themselves facing financial difficulties and are unable to meet their payment obligations. An extension agreement allows for the modification of the interest rate to provide temporary relief by granting the borrower an extended term to repay the loan. The Illinois Agreement to Modify Interest Rate on Promissory Note Secured by a Mortgage is a legally binding document that must be executed and signed by all parties involved. It is advised to consult with a legal professional to ensure the agreement complies with all relevant laws and regulations in the state of Illinois.
