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!
There's no such thing as a "mortgage deed". Have a free consultation with counsel.
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.