Q: Amending mortgage loan terms from same lender who is a family member.
I have a mortgage loan from a family member effective Jan 2020. A mortgage deed was recorded (NY) and refers to the respective promissory note. The lender (family member) and I want to amend to adjust the interest rate and term - the interest rate will be adjusted as of Jan 2020. Does the mortgage deed also need to be amended (and if so, recorded again)?
Not concerned here with gift or income tax implications. More concerned with the ability to rely on the amended terms in the event another party were to succeed to the rights of the lender (e.g., through death, bankruptcy, etc.). Thanks!
A:
There's no such thing as a "mortgage deed". Have a free consultation with counsel.
Jack
Daniel Michael Luisi agrees with this answer
1 user found this answer helpful
A: Yes, a New York real estate attorney can prepare all the forms necessary to perfect and record the amended promissory note and mortgage. And it should be properly recorded, because New York is a “first to file” state when it comes to real property, so only properly recorded documents will put bona fide purchasers on notice of the changes terms of the note.
Peter J. Weinman and Steven Warren Smollens agree with this answer
1 user found this answer helpful
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