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.
The Illinois Agreement to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of Promissory Note Secured by a Deed of Trust is a legal document that allows borrowers and lenders in Illinois to modify the terms of an existing promissory note and deed of trust. This agreement provides a framework for altering the interest rate, maturity date, and payment schedule agreed upon in the original loan agreement. There are several types of Illinois Agreements to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of Promissory Note Secured by a Deed of Trust, including: 1. Fixed-Rate Modification Agreement: This type of agreement is commonly used when the parties involved want to modify the promissory note and deed of trust to switch from a variable interest rate to a fixed interest rate. It outlines the new fixed rate, the modified maturity date, and any changes to the payment schedule. 2. Adjustable-Rate Modification Agreement: When borrowers and lenders want to adjust the interest rate on an adjustable-rate promissory note, they can use this type of agreement. It specifies the modified rate, any changes to the maturity date, and the revised payment schedule. 3. Extension Agreement: In cases where the borrower is unable to meet the original maturity date, an extension agreement can be used to modify the terms. This agreement sets a new maturity date, potentially adjusts the interest rate, and outlines any changes to the payment schedule. 4. Payment Schedule Modification Agreement: If the borrower and lender want to change the payment schedule outlined in the promissory note and deed of trust, a payment schedule modification agreement is utilized. This agreement adjusts the timing, frequency, and amount of ongoing payments without impacting the interest rate or maturity date significantly. It is essential to consult legal professionals knowledgeable in Illinois real estate laws and contracts to ensure the agreement complies with all applicable regulations. Properly drafting and executing these agreements is crucial to protect the rights and interests of all parties involved.
