Re: Questions from a beginner - Posted by Jeff Bliven
Posted by Jeff Bliven on February 09, 2001 at 09:46:05:
On 9 Feb 2001 14:07:45 -0000, you wrote:
>Thanks for your help. I am going through the information again in
>the course. I was getting a little overwhelmed with all there is to
>learn. Also, I was referring to a time extention of an existing loan
>with my first question, but I think I figured it out.
If i remember the original post then, let me try this…
Bear in mind that a mortgage is ONLY the security instrument, like a trust deed… it is the “Proof” that there is a lien against the property! The NOTE that the Mortgage references is what is important. Hence, if agreed by all parties, the NOTE can be shortened, lengthened, changed in any way, as long as it is properly written, signed & executed! So, basically nothing needs to be added, changed or deleted from the “Public Records”!
EG. Many years ago, my in-laws had a note on one of my properties for $20,000, proper Trust Deed was recorded, to make it deductible and all that. However years ago, when interest rates dropped and stayed down, I told them I didn’t mind giving them a premium above market (because they had it in a CD anyway, so it was really good for them), but it was really a premium by then… and they knew it! So, I said… we can adjust the rate, or I could pay it off… it was there choice! We made the rate more of an adjustable, and lengthened the term. And this was ALL done verbally. We didn’t need to change anything in writing, or on the Public Records. But, I could have written up a NEW note!
Hope that helps