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.
Phoenix, Arizona Change or Modification Agreement of Deed of Trust: A Comprehensive Overview In Phoenix, Arizona, a Change or Modification Agreement of Deed of Trust is a legal instrument used by property owners and lenders to modify the terms and conditions outlined in the original Deed of Trust. This agreement allows for specific changes to be implemented without altering the entire mortgage document. Types of Change or Modification Agreement of Deed of Trust in Phoenix, Arizona: 1. Interest Rate Modification: This type of agreement allows for adjustments to the interest rate specified in the original Deed of Trust. Homeowners and lenders may opt for a lower interest rate to reduce monthly mortgage payments or opt for a higher interest rate to secure a better return for lenders. 2. Loan Term Extension: This agreement extends the loan term beyond the original maturity date of the Deed of Trust. It can provide added flexibility for homeowners by spreading out the repayment over a longer period, which may result in lower monthly installments. 3. Payment Adjustment: This agreement enables adjustments to the monthly payment amounts by modifying principal and interest amounts specified in the original Deed of Trust. This modification can be beneficial for property owners facing financial hardships or seeking to recalibrate their payment obligations. 4. Partial Release: Under certain circumstances, property owners can request the release of a portion of the property from the Deed of Trust. This type of agreement allows the release of collateral on specific parcels or parcels deemed no longer necessary to secure the loan amount. 5. Subordination Agreement: This agreement alters the priority of liens on a property, allowing a new lien to take precedence over the original Deed of Trust. Typically, this occurs when homeowners need additional financing and the new lender requires the first lien position. 6. Assumption Agreement: When a property is sold, an assumption agreement transfers the responsibility of repaying the existing loan to the new buyer. The new borrower assumes the obligations outlined in the original Deed of Trust, while the terms of the agreement might be adjusted to suit both parties. It is important to note that while the above-mentioned agreements are common in Phoenix, Arizona, and widely used when modifying Deeds of Trust, individual cases may vary. The specific terms and conditions of each agreement are determined through negotiations between the borrower and the lender, with the involvement of legal professionals to ensure compliance with Arizona state laws and regulations. In conclusion, in Phoenix, Arizona, a Change or Modification Agreement of Deed of Trust serves as a flexible tool for property owners and lenders to modify specific terms and conditions of the original Deed of Trust. Whether it involves adjusting the interest rate, extending the loan term, or making payment modifications, these agreements offer individuals a way to adapt to changing financial circumstances while keeping the original mortgage intact.
