Dear John Doe and wife, Jane Doe: I am writing about a modification to your Loan. Defining the details of a loan modification agreement is essential for any successful process.Our free templates and this guide can help you get started. The mortgage modification agreement is a legal document between a lender and borrower to change an existing loan's terms. A Modification still must be documented correctly to be enforceable and to maintain the lender's original lien priority. Interest Rate Modification: This provision permits a reduction in the interest rate applied to the loan, which lowers the borrower's monthly payments. It is important to note that a loan modification is different from a forbearance agreement. Lender shall transmit the checklist documents via the HUD Healthcare Portal (link here). A loan modification is a change in the terms of a loan. It's like renegotiating a contract to make things work better for a borrower.