Posted by Dave on May 24, 2006 at 22:17:10:
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Note Extension - Posted by Dave
Posted by Dave on May 22, 2006 at 11:23:50:
All,
How do I formally extend a note?
The ballon payment is coming up soon and I want to extend the note for a few more years.
I have a form called ‘Modification of The Promissory Note’, is it sufficient to complete this form?
Re: Note Extension - Formal Modification - Posted by Michael Morrongiello
Posted by Michael Morrongiello on May 24, 2006 at 17:48:40:
Dave:
It depends…if the security instrument that secures the promissory Note (the Mortgage or Trust deed) refers to a maturity date and / or a balloon payment - it may be wise to formally modify and extend BOTH the Mortgage (the security instrument) along with the promissory Note.
A formal Mortgage & Note modification and extension agreement between the payors and payees can do the trick (in fact a sample one is included in my Unity of Real Estate & “paper” study course) as we have done many formal modifications over the years.
It is wise to affirm the actual principal balance outstanding and the interest paid through dates by reciting this data in the modification agreement. This saves potential disputes from cropping up down the road.
Best to your success,
Michael Morrongiello