Loan Modification Agreement
This Loan Modification Agreement (the "Agreement") is entered into as of January 1, 2050, by and between:
Lender:
[Your Company Name]
[Your Company Address]
Borrower:
John Doe
456 Home Ave
Cityville, State 12345
RECITALS
WHEREAS, Borrower obtained a loan from Lender dated March 15, 2020, in the principal amount of $250,000 (the "Loan") to purchase residential property located at 456 Home Ave, Cityville, State 12345 (the "Property"); and
WHEREAS, Borrower has experienced financial hardship and is unable to meet the original payment obligations under the Loan; and
WHEREAS, Lender and Borrower have agreed to modify the terms of the Loan to make the repayment more manageable for the Borrower.
NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:
1. Loan Modification
The terms of the Loan are modified as follows:
Original Loan Amount: $250,000.00
Outstanding Balance as of the Effective Date: $240,000.00
Interest Rate: The interest rate will be reduced from 5.5% to a fixed 4.0% annually, effective from the date of this Agreement.
Loan Term: The Loan term will be extended by 10 years, from March 15, 2050, to March 15, 2080.
New Monthly Payment: The new monthly payment, based on the modified Loan balance and interest rate, will be $1,200.00, effective February 1, 2050.
Late Fees: Any late fees accrued as of the Effective Date are forgiven. Future late fees will be assessed by the original Loan agreement.
2. Deferral of Payments
Borrower is granted a deferral of any outstanding payments due between December 1, 2049, and January 31, 2050. These deferred payments will be added to the Loan balance and will accrue interest at the newly modified rate of 4.0%.
3. Forbearance
The Lender agrees to temporarily suspend all foreclosure proceedings and any collection activities for a period of 6 months, commencing from the Effective Date. This forbearance period can be extended at the discretion of the Lender, based on the Borrower's continued financial hardship.
4. Effectiveness of Loan Modification
This modification does not alter or release any of the Borrower's obligations under the original Loan agreement except as specifically modified herein. Borrower acknowledges that the Loan remains in full force and effect and agrees to comply with the modified terms and conditions.
5. Acknowledgments
Borrower represents that the financial hardship that led to this modification has not been caused by any fraudulent actions or misstatements.
Borrower agrees to provide regular financial updates to Lender upon request to assess ongoing eligibility for further relief, if necessary.
6. Miscellaneous
Governing Law: This Agreement shall be governed by the laws of the State of [State], without regard to its conflict of laws principles.
Severability: If any part of this Agreement is found to be invalid or unenforceable, the remainder shall continue in full force and effect.
Entire Agreement: This Agreement constitutes the entire understanding between the parties concerning the Loan modification.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Your Name]
[Your Company Name]
[Date]
John Doe
[Date]
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