Can this be e-signed?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the four ESIGN elements are met: intent, consent, attribution, and record retention.

Is notarization required?

Not always. Whether a notary is required depends on state law and lender or recording requirements; some counties require notarized acknowledgements for recording a modification.

Is remote notarization accepted?

Many states permit Remote Online Notarization (RON) with identity proofing and audio-video recording; verify state notary rules before using RON for recording purposes.

Who must sign the document?

All parties with legal or contractual rights affected by the modification must sign — typically borrower(s), lender or authorized servicer, and any guarantor; corporate signers need evidence of authority.

What if names don’t match?

Name mismatches can delay recording and enforcement; correct or re-execute documents with consistent legal names and provide affidavits where necessary to cure the discrepancy.

How do I revoke a modification?

Revocation depends on the addendum terms and applicable law; unilateral revocation is often not permitted once all parties validly execute the addendum — consult counsel to understand remedies and drafting options.

Electronic Signature
Templates
Finance
Loan Modification Addendum

Loan Modification Addendum

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

LOAN MODIFICATION ADDENDUM

This Loan Modification Addendum (the Addendum) is made effective as of and amends that certain promissory note and related loan documents identified below.

Loan Identification

Loan Number Original Note Date Original Payee / Lender Borrower(s) Property Address Subject to the Loan

Recitals

WHEREAS, Borrower executed a promissory note (the Note) and related security instruments securing repayment of the loan identified above; and WHEREAS, Borrower and Lender desire to modify certain terms of the Note and related loan documents on the terms set forth in this Addendum; and WHEREAS, except as expressly modified by this Addendum, all terms, covenants and conditions of the Note and related loan documents remain in full force and effect.

Modification Terms

1. Principal Balance. The outstanding principal balance immediately prior to this modification is . The new principal balance after modification shall be .

2. Interest Rate. The interest rate following modification shall be % per annum. Fixed Variable

If variable, index and margin and caps:

3. Payment. The monthly principal and interest payment shall be payable on day of each month, beginning on , until the maturity date of .

4. Amortization. The loan shall be amortized over years resulting in payments, subject to adjustment as set forth herein.

5. Escrow for Taxes and Insurance: Escrow account to be maintained No escrow required

If escrow maintained, monthly escrow payment:

6. Late Charge. If any installment is not paid within days after its due date, Borrower shall pay a late fee equal to .

7. Prepayment. Borrower shall have the right to prepay in whole or in part without penalty prepayment subject to prepayment premium as set forth below.

If restricted, describe prepayment premium:

Representations, Warranties, and Covenants

Borrower represents and warrants that all information provided to Lender in connection with the original loan and this Addendum is true and complete, that Borrower has not conveyed, transferred or encumbered the Property except as previously disclosed to Lender, and that Borrower has full authority to execute this Addendum. Borrower covenants to comply with all affirmative covenants and maintain insurance and tax obligations as required by the Note and security instruments, except as specifically modified by this Addendum.

Default; Remedies; Acceleration

Except as expressly modified herein, the occurrence of any event of default under the Note or security instruments shall entitle Lender to exercise all rights and remedies available under the Note, security instruments and applicable law, including acceleration of the indebtedness, foreclosure and recovery of attorneys' fees and costs. Lender's acceptance of modified payments pursuant to this Addendum shall not constitute a waiver of any prior or subsequent default, except as expressly set forth in a written waiver signed by Lender.

Incorporation; No Other Modifications

This Addendum supplements and modifies only the specific terms set forth herein. All other terms and provisions of the Note, security instruments, and other loan documents shall remain in full force and effect and are hereby ratified and confirmed. In the event of any conflict between this Addendum and the Note or other loan documents, the terms of this Addendum shall govern as to the matters expressly modified.

Notices

Borrower Notice Address Borrower Contact Phone / Email Lender Notice Address Lender Contact Phone / Email

Additional Terms and Conditions

Acknowledgment

Borrower and Lender each acknowledge that they have read and understood this Addendum, that they have had the opportunity to obtain independent advice, that the terms herein are fair and reasonable, and that execution of this Addendum constitutes a binding modification of the referenced loan documents as to the matters expressly set forth herein.

Borrower

Printed Name:

By:

Date:

Lender

Printed Name:

By:

Date:

What a Loan Modification Addendum Is and When It Applies

A Loan Modification Addendum is a written amendment to an existing promissory note or loan agreement that changes one or more material loan terms — for example interest rate, principal balance, monthly payment, maturity date, or prepayment terms. It is not a replacement note unless expressly stated; instead it attaches to and modifies the original loan documents. Parties usually execute an addendum when borrower or lender requests permanent or temporary relief, and the addendum must be signed by authorized parties and dated to be effective.

Why a Clear Addendum Matters for Borrowers and Lenders

A properly drafted Loan Modification Addendum documents agreed changes, reduces ambiguity about obligations, and creates an enforceable record of modified terms under ESIGN/UETA when executed electronically or on paper.

Who Typically Prepares and Signs This Addendum

Common parties include the original borrower(s), the lender or servicer, and any guarantor or co-signer; each must have authority to approve the change.

Borrowers and co-signers who need payment relief or term changes.
Loan servicers or lenders that approve modifications and record changes.
Attorneys or loan officers who draft or review enforceability and recording issues.

External advisors such as counsel or a loan workout specialist may review the addendum before execution, particularly when terms affect collateral, escrow, or tax reporting.

Core Elements to Include in a Professional Loan Modification Addendum

A concise addendum highlights the modified clauses, references the original loan documents, and specifies effective dates and execution instructions so parties and third parties can locate and apply the change consistently.

Document Reference

Cite the original loan or note by date and document identifier so the addendum clearly attaches to the existing agreement.

Amended Terms

List each term being changed (interest rate, principal, payment amount, due date, maturity) with precise numeric values and formulas where applicable.

Effective Date

State the specific MM/DD/YYYY date when amended terms take effect and whether changes apply retroactively.

Consideration

Describe any consideration for the modification, such as forbearance, fee waiver, capitalization of arrears, or payment plan adjustments.

Signatures

Provide execution blocks for all required parties, including printed name, title where applicable, signature, and date for each signer.

Recording Instructions

Note whether the addendum must be recorded or filed with the county recorder and which party will pay associated fees.

Step-by-Step: Completing a Loan Modification Addendum

Follow these sequential steps to prepare, review, and execute an addendum that is clear, enforceable, and ready for recording if required.

01

Prepare Draft: Reference original loan, list each amendment, and add consideration language.
02

Legal Review: Have counsel check enforceability and recording implications before sending to signers.
03

Execute: Obtain signatures from all required parties, using notarization or RON if required.
04

Record / Distribute: File with county recorder if necessary and provide copies to all parties.

Configuring an eSignature Workflow for This Addendum

Set up a simple, auditable workflow so each signer receives the document in the correct order and authentication is appropriate to the risk.

Upload Document	PDF or DOCX preferred for consistent formatting
Add Fields	Place signature, date, and initial fields where needed
Signer Authentication	Email plus SMS code or KBA for higher assurance
Routing Order	Sequential routing: lender first, borrower second
Audit Trail	Enable timestamps, IP logging, and completion certificate

How Electronic Execution and Submission Typically Work

A standard eSigning flow captures intent, authenticates signers, records events, and delivers an auditable file and certificate of completion to all parties.

Sender Uploads: Document uploaded and fields placed by sender
Signer Notified: Signers receive email or secure link to review document
Authentication: Signers confirm identity via chosen method
Completion Package: Signed PDF and audit trail delivered to parties

Technical and Integration Considerations for eSubmission

Choose a platform that supports common file formats, detailed audit trails, and integrations with your loan servicing systems.

File Formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Box, Google Workspace
Security: AES-256 at rest, TLS 1.2/1.3 in transit

eSignature Vendor Pricing & Feature Snapshot

Comparison of starting price and common capabilities for typical eSignature platforms; signNow is listed first per guidance.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples of Modification Workflows

These short case arcs show how borrowers and servicers document and process modifications in practice.

Martin Properties — Mobile Execution

Martin Properties needed remote execution for time-sensitive cases

Used mobile signing and notarization where permitted
"I can process and execute all of these documents online with 100% compliance and built-in security," which reduced turnaround and travel costs while preserving the audit trail.

BIS — Enterprise Integration

BIS integrated signing into its servicing platform to automate routing

Automated routing reduced manual errors
"We felt most comfortable with airSlate SignNow given their SOC 2 certification and strict focus on ESIGN and UETA act compliance," enabling consistent, auditable modifications at scale.

Common Preparation Challenges to Avoid

Mismatched party names between the addendum and original loan create recording delays and may require corrective affidavits or re-execution.
Vague amendment language (e.g., 'reasonable payment adjustment') leads to disputes; numeric precision prevents ambiguity.
Failing to notarize or follow state RON rules when required can void recording or delay perfection of interests.
Not distributing fully executed copies promptly can cause servicing errors and misapplied payments or escrow calculations.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Timestamps, IP logging, and action history

Certifications: SOC 2 Type II and ISO 27001

HIPAA Support: BAA available for covered transactions

21 CFR Part 11: Controls available for FDA-regulated records

Access Controls: Role-based permissions and SSO support

Risks and Consequences of an Incorrect Addendum

Recording Delay: Clouds title or lien priority

Invalid Signature: Agreement may be unenforceable

Tax Implications: Possible reporting or withholding obligations

Foreclosure Risk: Defaults may continue if modification invalid

Regulatory Noncompliance: Servicer penalties or investor issues

Fraud Exposure: Unauthorized changes can lead to litigation

Practical Tips for Accurate and Efficient Completion

Adopt consistent drafting, verification, and distribution practices to reduce rework and legal exposure when modifying loan terms.

Use Precise Language

Spell out numeric values, measurement units, and calculation methods to prevent interpretive disputes and ensure consistent application by servicers.

Confirm Signer Authority

Verify corporate signatory authority or power of attorney documentation before execution to avoid later challenges to validity.

Retain an Audit Trail

Keep electronic audit logs and a certificate of completion showing signer identity, timestamps, and authentication method for compliance and dispute resolution.

Coordinate Recording

Decide who will record, who pays fees, and ensure the recorded version matches the executed copy exactly to preserve lien priority.

Typical Timelines and Processing Expectations

Processing times vary by servicer and jurisdiction; plan for review, approval, execution, and any recording steps when scheduling performance changes.

Lender Review Period:

Commonly 30–45 days for underwriting and approval

Execution Window:

Signers should execute within specified offer period, often 7–30 days

Recording Timeline:

If required, record within 30 days to preserve priority

Notice to Borrower:

Confirm receipt of fully executed agreement to all parties promptly

Post-Execution Updates:

Update servicing and payment schedules immediately after execution

Key Milestones from Request to Recorded Addendum

A simple milestone sequence helps teams track progress from borrower request through final recording and servicing updates.

01

Request Submitted

Borrower or representative submits modification request and supporting documents

02

Underwriting Review

Lender evaluates eligibility, financials, and investor constraints

03

Agreement Execution

All parties sign, notarize as required, and exchange copies

04

Recording & Servicing Update

Document recorded if necessary and loan servicing system updated

Typical Signer Roles

Loan Officer

A loan officer or servicer representative prepares and often sends the addendum for signature; they must ensure terms comply with investor guidelines and that required approvals are documented before sending for execution.

Borrower / Guarantor

Borrowers or guarantors must sign and date the addendum and supply any required notarization or witness attestations; their accurate identification and consent are essential for enforceability.

Frequently Asked Questions About Loan Modification Addenda

Answers to common execution, notarization, and enforceability questions when preparing or signing a Loan Modification Addendum.

Need help? Contact support

Can this be e-signed?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the four ESIGN elements are met: intent, consent, attribution, and record retention.
Is notarization required?
Not always. Whether a notary is required depends on state law and lender or recording requirements; some counties require notarized acknowledgements for recording a modification.
Is remote notarization accepted?
Many states permit Remote Online Notarization (RON) with identity proofing and audio-video recording; verify state notary rules before using RON for recording purposes.
Who must sign the document?
All parties with legal or contractual rights affected by the modification must sign — typically borrower(s), lender or authorized servicer, and any guarantor; corporate signers need evidence of authority.
What if names don’t match?
Name mismatches can delay recording and enforcement; correct or re-execute documents with consistent legal names and provide affidavits where necessary to cure the discrepancy.
How do I revoke a modification?
Revocation depends on the addendum terms and applicable law; unilateral revocation is often not permitted once all parties validly execute the addendum — consult counsel to understand remedies and drafting options.

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