A loan modification contract is used as the official evidence between borrower and money lender highlighting a modification in the pre-set loan repayment conditions, like it can be a change in the interest rate, loan repayment period or in the loan type. This type of contract includes the details of the borrower and lender, specifications and commitment clauses as per the modification made in the earlier contract.
Sample loan modification contract:
Loan modification contract Number: 24/ SC
This loan modification contract is entered between Ms. Patricia Filed, hereinafter known as the lender, AND, Mr. Allan Ray Brown, hereinafter referred as the borrower.
Permanent address details of the parties:
- The Borrower
Address: #78, Wakefield, MA, USA
Phone: 652 820 6567
- The Lender
Address: House no. 234, Saugus, MA , USA
Phone: 786 651 0981
This contract is commencing on December 10th, 2011 and is ending on December 10th, 2012.
Hereby, to obey the loan modification contract, following mentioned are the conditions:
Borrower has received an amount of $ 10,000 from the lender as the loan, with a modified interest rate of 6% per year cancelling the earlier interest rate of 8% w.e.f 10th December 2011.
- Obligations & Responsibilities:
The borrower will have to pay $500 per month as the monthly instalment for loan repayment on the 10th of every month. Borrower will have to pay these instalments until the principal amount and applied interest are fully paid back.
Hence, both the parties are requested to validate the contract:
Signature of the Lender:
Ms. Patricia Filed
Signed by the Borrower:
Mr. Allan Ray Brown
Signature of the Witness:
Alfred T Santosuosso