When people want things, things happen.  We just stopped a foreclosure four days prior to sale.  The creditor held a second mortgage on a primary residence with plenty of equity.  Both the lender and the homeowner needed a solution.  I negotiated a re-casting of the loan.  To make it short, the second mortgage was for $19,000 at 15% interest only.  The homeowner was several months behind because he had been un-employed for several months.  Now he has income.  Below is the amendment to the original promissory.

Amendment to Promissory Note

Re-casting of Principal and Terms

Date:                July 7, 2009

Background

For the purpose of financing the property known by address as XXXX NE XXX St, Portland, Or 9721X, Mr. L.L.B. and G.F. Investments entered into a contract.  In this contract G.F. Investments loaned Mr. L.L.B. a sum of money.  In exchange for the loan, Mr. L.L.B.  promised to pay back the loan, plus interest.  See Exhibit 1.  To secure performance of this contract, Mr. L.L.B.  pledged the referred property as collateral.  See Exhibit 2. 

As a result of negotiation and agreement between Mr. L.L.B.  and G.F. Investments, the promissory note has been re-casted, but the trust deed remains un-affected.  This contract is an amendment to the referred promissory note.  The terms of the loan, and the principal amount have been changed.  These new binding conditions are detailed below.

Trust Deed of Reference

• Grantor                                     L.L.B.
• Trustee                                     Chicago Title
• Beneficiary                                G.F. Investments
• Document Date                         April 16^th, 2007
• Recording Date                         April 27^th, 2007
• Instrument Number                    2007-xxx – Multnomah County Mortgage Records
• Collateral Property                     xxx NE xxxx St, Portland, Or 9721x

Note:          Trust deed remains un-affected

                  See Exhibit 2   

Original Loan Principal and Terms

• See Exhibit 1 

New Loan Principal and Terms

• Principal                                   $30,000
• Interest                                     7% interest only
• Term                                         2 years
• Monthly Payment                      $175 payable every 10th day of the month until end of term
• Good Faith Payment                 $325 due to be delivered via US Mail and post dated July 7^th, 2009
• Late Payment Penalty                $50 if payment later than 5 days late
• Balloon Date                             Full principal due July 10th, 2011
• Pre-Payment Penalty                 None

This entry was posted on Thursday, July 9th, 2009 at 3:24 am and is filed under Stop Foreclosure . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.