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 Texas Change or Modification Agreement of Deed of Trust is a legal document used to make alterations or adjustments to an existing deed of trust in the state of Texas. This agreement allows the parties involved, such as the borrower, lender, and any other interested parties, to modify the terms, conditions, or provisions of the original deed of trust. This agreement is crucial when certain circumstances require changes to the existing deed of trust, such as refinancing, loan adjustments, interest rate modifications, or extending the maturity date of the loan. By signing this agreement, all parties involved give their consent to the proposed modifications and ensure that they are legally binding. There are various types of Change or Modification Agreements of Deed of Trust in Texas, including: 1. Modification of Loan Terms: This type of agreement allows for changes to be made to the loan terms, such as adjusting the interest rate, monthly payments, or maturity date. It may be beneficial for borrowers facing financial hardships or seeking better loan terms. 2. Release of Collateral: In some cases, the original deed of trust may include multiple properties as collateral. If the borrower has successfully paid off a portion of the loan, they may request a release of collateral agreement. This agreement removes specific properties from being held as security for the loan. 3. Subordination Agreement: In situations where the borrower needs to obtain additional financing while the original deed of trust is still in effect, a subordination agreement may be necessary. This document establishes the priority of the liens on the property, ensuring that the new lender's interest is secondary to the existing lender's interest. 4. Assumption Agreement: When a property is sold or transferred to a new owner, and they agree to take responsibility for the outstanding loan, an assumption agreement is required. This agreement transfers the liability to the new borrower while modifying the name and contact details of the deed of trust parties. Overall, a Change or Modification Agreement of Deed of Trust in Texas provides a flexible solution for borrowers and lenders to amend the terms of an existing loan. It ensures that all parties are in agreement with the proposed changes and protects their legal rights and interests. It is crucial to consult with a qualified attorney or real estate professional when considering or drafting such an agreement, as it involves complex legal procedures and requirements specific to Texas real estate laws.
