Quote from Bill on September 9, 2024, 12:24 pmWhat is a Loan Modification / Workout Agreement?
Also known as Loan Mods. A Loan Modification process is where the terms of a Mortgage Note are modified outside the original terms of the contract agreed to by the lender and the borrower. In general, any loan can be modified to the benefit of the borrower in one or more of the following ways:
- Changing the Interest Rate
- Reduction in Unpaid Principal Balance or Owed Arrearage
- Reduction in Late Fees or other Penalties
- Lengthening the Loan’s Terms
- Changing the Monthly Loan Payment
The new modified loan terms are spelled out on a new agreement called a loan modification or workout agreement that both the borrower and lender sign. Some lenders record the new agreement in the county records.
What is a Loan Modification / Workout Agreement?
Also known as Loan Mods. A Loan Modification process is where the terms of a Mortgage Note are modified outside the original terms of the contract agreed to by the lender and the borrower. In general, any loan can be modified to the benefit of the borrower in one or more of the following ways:
The new modified loan terms are spelled out on a new agreement called a loan modification or workout agreement that both the borrower and lender sign. Some lenders record the new agreement in the county records.