Typical Questions
Frequently Asked Questions about ModDocs
The Effective Date, Current Maximum Principal Amount, Outstanding Principal Balance, and Expiration Date data fields are unique to our ModDocs platform and are each intended for a specific use to fully document a modification and/or assumption within the GoDocs platform.
- What is the Effective Date data field?
The Effective date is the date in which the modifications come into effect to the loan. Modifications to the Note begin the first day of the month following the Effective Date to, therefore the Effective Date must be at least one calendar day before any note modifications begin. The Effective Date is separate from the Document Date of the modification, which is a reference date for the modification. E.g. an Effective Date of August 15 would result in an interest rate modification as of September 1. Therefore, the modified payment will commence on October 1.
2. What is the Current Maximum Principal Amount? How is it different from the Outstanding Principal Balance?
The Current Maximum Principal Amount is the original loan amount unless previously modified (Additional Advance/Principal Reduction).
The Outstanding Principal Balance is the outstanding principal balance of the loan as of the date entered in the following field. Signing parties agree to such amount as a recital of the state of the loan at the time of the modification.
If there has been no paydown of the loan, these fields may be the same amount. If there has been any paydown of the loan, these fields may be different amounts. These fields are not intended to include modified amounts effective as of the ordered loan modification.
3. What is the Expiration Date/Deadline Date data field?
The Deadline Date is intended to be a date in which all conditions of the modification are completed, including all modification documents signed. Failure to complete all conditions by this date results in a potential renegotiation of terms and updated modification documents.
4. Can you duplicate an existing loan doc order into a ModDoc?
ModDocs data fields must be completed manually or duplicated through a previous ModDocs package only. Due to the difference in the data fields and product types, modifications cannot be created from duplicating an existing loan origination package at this time. All modification packages must come from data entry or duplication of a previous modification package only. Once a ModDocs order has been started, the Lender cannot be changed. As such, please restart the ModDocs order under a new table ID to update the Lender.
5. Does the catchall modification paragraph suffice for a loan that was already modified as the new modification doesn’t directly include the modified loan amount?
Please note that this Loan Modification Agreement modifies each of the Loan Documents, including any modifications which may have already taken place. GoDocs is clearly identifying the original loan, and Note by instrument number and recording date. We also are having the parties acknowledge the current outstanding principal balance. And we are stating that this Loan Modification Agreement is modifying all previous Loan Documents and Mods and everything else not modified remains in full force and effect. As an example, we are not modifying or undoing the previous modification term which provided for the additional advance of funds. As such our catch-all paragraph does encompass all previous mods and is legally sufficient to protect both the Bank and the Borrower.
Third-party Fee Owner: At this time, we do not have a third party fee owner drop down for mods and/or assumptions. Please include the borrower and owner (if not borrower) in the special instructions (additional modification terms) field at the bottom of the mods tab. This type of order will be processed under Premium Support.