Loan Modification Agreement Template – Free Mortgage Forms

This loan modification agreement template is designed for homeowners, borrowers, mortgage lenders, loan servicers, banks, credit unions, and financial institutions seeking to modify the terms of an existing mortgage or loan agreement to prevent default or foreclosure. This template is primarily applicable to United States mortgage modifications and can be customized to comply with federal programs such as HAMP (Home Affordable Modification Program), state-specific foreclosure prevention laws, and lender requirements.

This comprehensive agreement establishes the modified terms between lenders and borrowers experiencing financial hardship, creating a legally binding amendment to the original loan contract. It covers essential provisions including modified principal balance and any principal reduction or forbearance, new interest rate (fixed or adjustable) and calculation method, extended loan term and revised maturity date, modified monthly payment amount and due dates, capitalization of past-due amounts including arrears and fees, and reinstatement of loan to current status. The template also addresses escrow account adjustments for taxes and insurance, removal or modification of balloon payment provisions, trial payment period requirements, conditions for permanent modification approval, borrower representations regarding financial hardship, and release of claims related to prior default.

Ideal for residential mortgage modifications, commercial loan workouts, personal loan restructuring, and borrowers facing unemployment, medical expenses, divorce, or income reduction, this template helps prevent foreclosure while protecting lender interests by documenting revised payment obligations and maintaining enforceable loan terms.