Too Nice?

[mountaingirl]

What is the name of your state (only U.S. law)? Louisiana
Hope this is in the right forum.
My Mom holds the mortgage on a large piece of rural property which the new owner is developing by selling lots for rather nice houses. Part of our contract says when they sell a lot, my mother gets 60%, which is applied to the principal. They also make a payment twice/year which does not change. This owner just called and said he is selling 2 pieces of property plus the regular note is due in a couple of days. He asked if we would waive the 60% on one of the pieces of property just this once so he can finish a building project (I suspect he doesn't have the money for his note in actuality). We are tempted to accept this as it will keep his principal high (Mom is making a kiling on the interest), and keep my Mom's income down since she's made a lot of money this year (for income tax purposes). Is this a legal no-no, does it set a precedent, is there some reason we absolutely shouldn't do this? Appreciate anything you can recommend.What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[OHRoadwarrior]

Write up an addendum for him to sign outlining that it is a one time only concession and it is understood by the parties it is not intended to create any lasting modification or precedent, to the terms of the agreement.

 

[mountaingirl]

thanks. I like your unemployment facts.

 

[HomeGuru]

What is the name of your state (only U.S. law)? Louisiana
Hope this is in the right forum.
My Mom holds the mortgage on a large piece of rural property which the new owner is developing by selling lots for rather nice houses. Part of our contract says when they sell a lot, my mother gets 60%, which is applied to the principal. They also make a payment twice/year which does not change. This owner just called and said he is selling 2 pieces of property plus the regular note is due in a couple of days. He asked if we would waive the 60% on one of the pieces of property just this once so he can finish a building project (I suspect he doesn't have the money for his note in actuality). We are tempted to accept this as it will keep his principal high (Mom is making a kiling on the interest), and keep my Mom's income down since she's made a lot of money this year (for income tax purposes). Is this a legal no-no, does it set a precedent, is there some reason we absolutely shouldn't do this? Appreciate anything you can recommend.What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

**A: Mom needs to hire a real estate attorney to review the current agreement and protect her interest. I would not agree to waive the 60% as she is then giving money away. There are many other ways to get this done. One way is too accept less $$ this year and more next year.