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.
Utah Change or Modification Agreement of Deed of Trust is a legal document that allows for alterations, amendments, or adjustments to be made to an existing deed of trust in Utah. This agreement is often used when there is a need to modify the terms, conditions, or provisions of the original deed of trust. The purpose of a Change or Modification Agreement is to accommodate changes in the borrower's financial situation, loan terms, or other circumstances that may affect the repayment of the mortgage. By adjusting the terms, both the borrower and lender can find mutually agreeable solutions to ensure the continued viability of the loan. Some common scenarios in which a Change or Modification Agreement might be used include refinancing the loan to obtain a lower interest rate, extending the loan term to reduce monthly payments, or changing the payment schedule to better align with the borrower's cash flow. These modifications can help homeowners avoid foreclosure or defaulting on their loan obligations. It is important to note that a Change or Modification Agreement of Deed of Trust is not the same as refinancing or taking out a new loan. Instead, it acts as an addendum to the original deed of trust, specifying the changes agreed upon by both parties. This agreement must be duly executed and notarized to hold legal validity. Different types of Change or Modification Agreements may include: 1. Interest Rate Modification Agreement: This type of agreement allows for a change in the interest rate specified in the original deed of trust. It could involve lowering the rate to reduce the borrower's monthly payments or increasing the rate to ensure proper compensation for the lender. 2. Term Extension Agreement: This agreement involves extending the loan term beyond the initial maturity date stated in the original deed of trust. The purpose is to provide the borrower with a longer timeframe to repay the loan, thus reducing the monthly installments. 3. Payment Modification Agreement: This type of agreement allows for a change in the payment structure without altering the interest rate or loan term. For example, it might involve converting an adjustable payment plan to a fixed payment plan or vice versa. 4. Principal Reduction Agreement: In this agreement, the borrower and lender agree to reduce the outstanding principal balance owed on the loan. This can be done as a gesture of good faith, to encourage continued repayment, or to resolve disputes related to the loan. Each Change or Modification Agreement of Deed of Trust should be carefully reviewed and customized to meet the specific needs of the parties involved. It is advisable to seek legal counsel to ensure compliance with Utah state laws and to protect the interests of both the borrower and lender.
