This loan modification agreement has been entered into by ABC who shall be known as the lender for the rest of this document, and XYZ who shall be called the borrower for the purpose of this document. It is dated dd/mm/yyyy and will come into effect upon date of signing. It relates to the loan extended by the lender numbered XXXXX for the property located at XXXXXX.
1. Current and Revised Terms of Loan
According to loan modification agreements, the current and revised terms of the loan are listed below:
1.1 Outstanding Amount
The amount currently outstanding on the loan is XXXX. The borrower undertakes to repay this amount under the amended terms and conditions provided in this loan modification agreement.
1.2 Revised Interest Rate
The interest rate applied for the outstanding amount shall be reduced from XXX% to YYY% in this Loan Modification Agreement. This rate shall apply for the rest of the tenure of the loan.
1.3 Revised Tenure
As per Loan Modification Agreements, the tenure of the loan has now been amended from XXX to YYY and the borrower is expected repay all outstanding dues by this time. If the amount is not fully paid by this time, the borrower must take steps to make full settlement.
1.4 Revised Installment Amount
As per the loan modification agreement, the installment amount has been lowered from XXX to YYYY following the reduction of interest rate and increase in tenure. This will due by the 5th of every month starting from dd/mm/yyyy
2. Sale of Mortgaged Property
According to loan modification agreements, if at any time the borrower chooses to sell the mortgaged property, he must seek the prior approval of the lender. On selling the property, the borrower must make full settlement of all outstanding dues to the lender before utilizing the funds for any alternative purpose.
3. Borrowers Obligations
As per Loan Modification Agreements, the borrower shall meet the following obligations upon signing of this contract:
3.1 Make regular and full payments in line with the specifications mentioned in section 1 of this Loan Modification Agreement
3.2 The borrower understands that all the conditions of the existing loan agreement continue to apply except for the changes listed in section 1 of the Loan Modification Agreement
3.3 Loan Modification Agreements do not in any way release the borrower from his obligation of repaying the outstanding loan amount.
3.4 The borrower shall amend his personal will testament and other related documents so that the terms of this Loan Modification Agreement shall apply to his heirs and successors in the event of his death.
4. Lenders Rights
As per Loan Modification Agreements, the Lender shall enjoy the following rights with respect to the outstanding loan:
4.1 Any fees, expenses or legal costs associated with drafting Loan Modification Agreements shall be borne by the borrower and included in the loan amount for repayment
4.2 The Loan Modification Agreement stipulates that the lender shall be notified in advance of any changes including sale or transfer of the property. If the changes are unplanned, the lender must be notified at the first available date.
4.3 In case of sale or transfer of the property, the lender enjoys first priority in the distribution of funds realized from the sale or transfer.
This Loan Modification Agreement will come into effect on DD/MM/YYYY. The borrower understands all the terms and conditions contained therein and shall fully comply with these amendments.