The Modification Sample Clauses
The Modification clause establishes the conditions under which changes to the agreement can be made after it has been executed. Typically, this clause requires that any amendments or alterations to the contract be made in writing and signed by all parties involved, ensuring that verbal agreements or informal changes are not legally binding. By setting clear procedures for modifying the contract, this clause helps prevent misunderstandings and disputes about whether changes are valid, thereby ensuring that all parties are aware of and consent to any adjustments to their obligations.
The Modification. If my representations and covenants in Section 1 continue to be true in all material respects and all modification preconditions set forth in Section 2 have been met, the Loan Documents will automatically become modified on Click or tap here to enter date. (the “Modification Effective Date”). I understand that if I have failed to make any payments as a precondition to this modification under an applicable trial period plan, this modification will not take effect. As of the Modification Effective Date:
A. The modified principal balance of my Note may include amounts and arrearages that will be past due as of the Modification Effective Date (including unpaid and deferred interest, collectively, “Unpaid Amounts”) less any amounts paid to the Lender but not previously credited to my Loan. The new principal balance of my Note will be $Click or tap here to enter modified UPB. (the “New Principal Balance”). Interest at the rate of Click or tap here to enter interest rate.% will begin to accrue on the New Principal Balance and the modified monthly payment of principal and interest thereunder will be $Click or tap here to enter P&I only. and will be due initially on Click or tap here to enter date. and on the first day of each and every calendar month thereafter during the term of the Loan. I understand that by agreeing to add the Unpaid Amounts to the outstanding principal balance, the added Unpaid Amounts accrue interest based on the interest rate in effect under the Note, as modified by this Agreement. I also understand that this means interest will now accrue on the unpaid Interest that is added to the outstanding principal balance, which would not happen without this Agreement.
B. The Maturity Date will be Click or tap here to enter date. (“Maturity Date”). If I still owe any amounts due under the Note or the Mortgage, as amended by this Agreement, on the Maturity Date, I will pay this amount in full on the Maturity Date.
C. I will be in default if I do not comply with the terms of the Loan Documents, as modified by this Agreement.
D. If a default rate of interest is permitted under the Loan Documents, then in the event of default under the Loan Documents, as amended, the interest that will be due will be the rate set forth in the Loan Documents.
The Modification. If all preconditions to the modification set forth in Section 1 of this Agreement have been met, then the Loan Documents shall automatically become modified on 3/1/2014 (the “Modification Effective Date”). I understand that if I have failed to make any payments as a precondition to this modification, this modification will not take effect and this Agreement will not be effective. If this Agreement becomes effective, the Loan Documents will be modified to include the following new terms which are acknowledged and agreed: A New Principal Balance: After successful completion of the Trial Period and other conditions set forth in Section 1 above, the new principal balance of my Note shall be $300,907.48 (the “New Principal Balance”). This includes, to the extent permitted by law, all amounts and arrearages that are past due (including any unpaid late charges) less any amounts paid to the Servicer but not previously credited to my Loan. A portion of the New Principal Balance shall be deferred and may be forgiven as provided in Sections 2.B and 2.C. of this Agreement. B Deferred Principal Balance: $167,432.48 of the New Principal Balance shall be deferred (the “Deferred Principal Balance”). The Deferred Principal Balance shall be treated as a non-interest bearing principal forbearance and I am not obligated to pay interest or make monthly payments on any portion of it.