Please find below a template of the ALTA Mortgage Modification with Additional Amount of Insurance Endorsement. If you’d like to learn more about this and other ALTA endorsements, request a copy of our free endorsement book.
MORTGAGE MODIFICATION WITH ADDITIONAL AMOUNT OF INSURANCE (ALTA 11.2-06) (Adopted 12/02/2013)
- For purposes of this endorsement only:
- ”Modification” means the agreement between _______ and ________ dated ________ [and recorded _________ as document number] _______.
- ”Date of Endorsement” means ____________.
- The Amount of Insurance is increased to $_________.
- Subject to the exclusions in Section[s] 4 [and 5] of this endorsement, the Exclusions from Coverage, the Exceptions contained in Schedule B, and the Conditions contained in the policy, and any exclusion or exception in any prior endorsement, the Company insures as of Date of Endorsement against loss or damage sustained by the Insured by reason of any of the following:
- The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title as a result of the Modification;
- The lack of priority of the lien of the Insured Mortgage over defects in or liens or encumbrances on the Title, except: [Specify additional exceptions, if any];
- The failure of the following matters to be subordinate to the lien of the Insured Mortgage: [Specify matters to be insured as subordinate, if any].
- This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses, by reason of any claim that arises out of the transaction creating the Modification by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws that is based on:
- the Modification being deemed a fraudulent conveyance or fraudulent transfer; or
- the Modification being deemed a preferential transfer except where the preferential transfer results from the failure
- to timely record the instrument of transfer; or
- of such recordation to impart notice to a purchaser for value or to a judgment or lien creditor.
- [5. This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses, by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage because all applicable mortgage recording or similar intangible taxes were not paid at time of recording of the Modification].
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.