Posted by John Merchant on March 30, 2010 at 14:08:14:
If your Deed of trust is a 1st then basically you now own the property (actually the right to foreclose on your 1st DOT and take the property) so what you’ve got is certainly an asset and should be listed on the FS as such.
Non-Performing Note on Financial Statement - Posted by genny - Texas
Posted by genny - Texas on March 29, 2010 at 18:29:00:
Is a non-performing real estate note an asset in preparing a financial statement?
Idea for your delinquent note & DOT - Posted by John Merchant
Posted by John Merchant on April 24, 2010 at 13:20:07:
While, of course, your delinq. note from your SIL is something YOU don’t want to foreclose upon, you might think of using it as trading “wampum” to some other REI for equivalent value of something he owns.
Something that would be more productive for you.
Then that REI would be the bad guy and do, or at least be able to threaten, foreclosure and you wouldn’t be involved in that action.
I have been the beneficiary of two or three such properties in the past, where owner was in such a box but needed to do something with his assets and use for income production, etc.
So I was able to make a deal with O and take over his problem property and do what he/she would or could not do.
Depends on value of collateral - Posted by blue206
Posted by blue206 on March 29, 2010 at 18:48:47:
I take it you own the delinquent note, not owe it 
Value of any note really depends on value of underlying security. I’ve seen some mighty big, mighty worthless notes where the mortgaged property was either worthless or junk.
Re: Depends on value of collateral - Posted by genny - Texas
Posted by genny - Texas on March 30, 2010 at 11:05:36:
The note is for $75,000.00 Property Value (tax assessed value) is 81,320.00. I sold the property to my son-in-law on note and deed of trust at 0% interest - single pay. It was due a couple of years ago. I’ve not done anything to foreclose - don’t plan to. Now I have to do a financial statement and do not know if it is an asset or liability or neither.
Idea for you - Posted by John Merchant
Posted by John Merchant on July 03, 2010 at 11:40:41:
As I’ve told others, you’ve maybe got some good trading wampum here IF the value of the secured realty is significantly higher than what your SIL owes you.
Whereas you, in your role as kindly MIL, can’t foreclose w/o causing family strife or war, nothing prevents your trading that note and DOT to some other REI who could, as an independent and diligent REI, then post and proceed to foreclose on that DOT.
Chances are good that if you were to post that delinq. note locally* and your willingness to trade that for somebody else’s problem property, you might just find a taker and a property you could then deal with w/o a family fight.
*Craigs List and/or local REI website might find a taker for you. Also, NCE (Nat’l Council of Exchangers) has lots of RE ads by don’t-wanters. They welcome postings and ads by non-members and many of their ads are by motivated owners who really want to move their properties.
Good luck to you.