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.
A Louisiana Agreement to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of Promissory Note Secured by a Deed of Trust is a legally binding document that allows parties to modify the terms of an existing promissory note and the associated deed of trust. This agreement is particularly relevant in situations where a borrower and a lender have previously entered into an agreement but now wish to alter certain key terms. In Louisiana, there are various types of agreements that can be used to modify the interest rate, maturity date, and payment schedule of a promissory note secured by a deed of trust. Some of these agreements include: 1. Louisiana Agreement to Change Interest Rate: This type of agreement focuses solely on modifying the interest rate specified in the original promissory note. It allows the parties to adjust the interest rate to reflect changes in the market or other mutual considerations. 2. Louisiana Agreement to Change Maturity Date: This agreement is used when the parties want to modify the maturity date of the promissory note. It can be helpful in situations where the borrower is facing financial difficulties and needs more time to repay the loan. 3. Louisiana Agreement to Change Payment Schedule: This type of agreement involves modifying the payment schedule outlined in the original promissory note. It allows the parties to adjust the frequency or amount of payments, or even negotiate a deferment or other alternative repayment arrangement. To draft a comprehensive Louisiana Agreement to Change or Modify Interest Rate, Maturity Date, and Payment Schedule of Promissory Note Secured by a Deed of Trust, certain key elements must be included. These elements usually involve: a. Identification of the parties: Clearly state the legal names and addresses of both the borrower and the lender. b. Recital of the Original Agreement: Provide a brief summary of the original promissory note and the accompanying deed of trust, such as the date of execution and the relevant terms. c. Modifications: Specifically outline the desired changes to be made, whether it includes adjusting the interest rate, modifying the maturity date, or changing the payment schedule. d. Consideration: Clearly indicate the consideration, or mutuality of benefits, that the parties have agreed upon for entering into this modification. This can be monetary or non-monetary, such as payment of a fee or an agreement to fulfill certain obligations. e. Incorporation of Original Terms: State that all other terms and conditions of the original promissory note and deed of trust, not specifically modified, remain in full effect. f. Execution: Both the borrower and the lender, or their authorized representatives, must sign and date the agreement in the presence of witnesses or a notary public. It is crucial to consult with a legal professional experienced in Louisiana real estate and financial law before drafting or executing any such agreement. This ensures that the agreement is compliant with Louisiana state laws and accurately reflects the intentions and interests of all parties involved.
