Q: Porting a Secured Personal Loan to a different house
I have a $360K personal loan with my daughter on her current house which is secured with a deed of trust. She just closed on a new house, and I provided an unsecured bridge loan to allow that to be a cash purchase. We will use the proceeds from her current house to pay off the bridge loan. Well, she just sold the current house and closes in 2 weeks. She would like to port the $360K loan to the new house, because the loan has a very favorable rate based on 2021 IRS AFR rates. So, my question is: After she closes on her current house, can I have a lawyer amend the $360K loan to be secured by the new house and have a new Deed of Trust created to secure the amended $360K loan to the new house? My main objective is to make sure the $360K loan is not considered a gift in the eyes of the IRS, i.e., preserving the 2021 rate based on the IRS AFR rates at the time.
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