TaoWanderer
Member
What is the name of your state (only U.S. law)? CA
Last year I had to do a loan modification on the note I'm carrying to save it from default, changing the term from 7 years to 30 years and thus lowering the payment. I have been servicing the loan myself and calculating the interest using the simple interest method which calculates the interest on a daily basis, based on the number of days from the last payment. I had an attorney draw up the documents. Now that I'm trying to figure out everything for taxes, I think there may be a mistake in the Loan Modification document. Here is the part I think may have a mistake:
1. As of APRIL 22, 2009, the amount payable under the Note and Security Instrument (“New Principal Balance”) is U.S. $ 147,699.87 consisting of the unpaid amount(s) loaned to the Borrower by Creditor plus any accrued and unpaid interest and other amounts capitalized as set forth in Schedule “A,” attached hereto and made a part hereof.
2. Borrower promises to pay the New Principal Balance, plus interest, to the order of Creditor. Interest will be charged on the New Principal Balance for the remaining 341 months of the loan at the yearly rate of 10.000% from APRIL 1, 2009, and Borrower promises to pay April’s monthly payment of principal and interest in the amount of $1,308.03 on the 22ND of APRIL, 2009. Monthly payments of $1,308.03 will be due on the 1ST day of each month commencing on the 1ST of MAY 2009, until principal and interest are paid in full. If on AUGUST 1, 2037 (“Maturity Date”), Borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, Borrower will pay these amounts in full on the Maturity Date.
The last payment the borrower made before the loan mod was on 3-10-2009. This document was signed on 4-22-2009. The attorney capitalized (added) the unpaid interest for the period from 3-10-2009 to 4-21-2009 which came to $1,677 into the principle balance. The borrower made their payments on 4-22-2009 and 5-1-2009 as agreed upon. In section 2 above it says, "Interest will be charged on the New Principal Balance for the remaining 341 months of the loan at the yearly rate of 10.000% from APRIL 1, 2009" So should I follow this sentence and calculate the interest from 4-1-2009, which kinda seems to me like I would be double charging her interest for the period between 4-1-2009 and 4-21-2009, which was already capitalized into the principal or should I just continue calculating interest from where I left off on 4-21-2009. Very confused and can't get a hold of the attorney who wrote it anymore. Please help. Thank you.What is the name of your state (only U.S. law)?
Last year I had to do a loan modification on the note I'm carrying to save it from default, changing the term from 7 years to 30 years and thus lowering the payment. I have been servicing the loan myself and calculating the interest using the simple interest method which calculates the interest on a daily basis, based on the number of days from the last payment. I had an attorney draw up the documents. Now that I'm trying to figure out everything for taxes, I think there may be a mistake in the Loan Modification document. Here is the part I think may have a mistake:
1. As of APRIL 22, 2009, the amount payable under the Note and Security Instrument (“New Principal Balance”) is U.S. $ 147,699.87 consisting of the unpaid amount(s) loaned to the Borrower by Creditor plus any accrued and unpaid interest and other amounts capitalized as set forth in Schedule “A,” attached hereto and made a part hereof.
2. Borrower promises to pay the New Principal Balance, plus interest, to the order of Creditor. Interest will be charged on the New Principal Balance for the remaining 341 months of the loan at the yearly rate of 10.000% from APRIL 1, 2009, and Borrower promises to pay April’s monthly payment of principal and interest in the amount of $1,308.03 on the 22ND of APRIL, 2009. Monthly payments of $1,308.03 will be due on the 1ST day of each month commencing on the 1ST of MAY 2009, until principal and interest are paid in full. If on AUGUST 1, 2037 (“Maturity Date”), Borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, Borrower will pay these amounts in full on the Maturity Date.
The last payment the borrower made before the loan mod was on 3-10-2009. This document was signed on 4-22-2009. The attorney capitalized (added) the unpaid interest for the period from 3-10-2009 to 4-21-2009 which came to $1,677 into the principle balance. The borrower made their payments on 4-22-2009 and 5-1-2009 as agreed upon. In section 2 above it says, "Interest will be charged on the New Principal Balance for the remaining 341 months of the loan at the yearly rate of 10.000% from APRIL 1, 2009" So should I follow this sentence and calculate the interest from 4-1-2009, which kinda seems to me like I would be double charging her interest for the period between 4-1-2009 and 4-21-2009, which was already capitalized into the principal or should I just continue calculating interest from where I left off on 4-21-2009. Very confused and can't get a hold of the attorney who wrote it anymore. Please help. Thank you.What is the name of your state (only U.S. law)?