Updated about 7 years ago on . Most recent reply
Mortgage modification from a Lender perspective
Hello, so I'm currently lending to another investor using my LLC. I have a mortgage and note on the property in question. If I wanted to update the principal balance and terms of the note, is that something I could just add to the existing documents as an amendment? Would there be any negative impact?
Scenario:
The mortgage is for 100k with a 10-year term. I would like to change the mortgage and note to be 90k with a 3-year term. Are there any tax implications to the borrower? Would he need to claim the 10k spread as forgiveness on his taxes?
Thank you guys in advance!