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.
A South Dakota Change or Modification Agreement of Deed of Trust is a legal document employed when parties involved in a mortgage loan wish to modify the terms or conditions of the original deed of trust. This agreement enables the borrower, lender, and any other relevant parties to make adjustments to the existing deed of trust to accommodate changes in circumstances or to correct any inconsistencies. In South Dakota, there are various types of Change or Modification Agreements of Deed of Trust, including: 1. Interest Rate Modification: This type of modification agreement focuses on revising the interest rate outlined in the original deed of trust. Parties may agree to lower or increase the interest rate based on prevailing market conditions or borrower's financial situation. 2. Term Extension or Reduction: This modification option involves extending or reducing the loan's repayment term. Borrowers can negotiate for a longer term to reduce monthly payments or request a shorter term to pay off the loan sooner. 3. Principal Modification: In certain cases, borrowers may face financial hardships, making it difficult to meet their monthly mortgage payments. This type of modification agreement aims to reduce the principal loan amount or provide alternative methods to repay it while avoiding foreclosure. 4. Change in Repayment Structure: This type of modification agreement adjusts the repayment structure, such as converting an adjustable-rate mortgage (ARM) to a fixed-rate mortgage or implementing a graduated payment plan to ease initial financial burden for the borrower. 5. Removal or Addition of Borrower: Sometimes, a borrower may want to remove or add individuals as co-signers or co-borrowers on the loan. This modification agreement facilitates such adjustments while ensuring all parties involved agree to the changes. When drafting a South Dakota Change or Modification Agreement of Deed of Trust, it is crucial to include key elements such as the original loan details, the specific modifications being made, the effective date of the modifications, and the signatures of all parties involved. Moreover, it is advisable to seek legal counsel to ensure compliance with South Dakota state laws and to safeguard the interests of all parties throughout the modification process.
