Matured RE Loan-How to Set Note Up Again

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Question:

I am dealing with a real estate loan that has matured. It is past due and on the bank's Watch list. Could you tell me how to deal with this so I can set the Note up again to get the customer to pay? I don't know that I want to rewrite the Note and give it a new number in fear of losing the nonaccrual interest that currently shows on the loan. I'm thinking of an extension or something like that, however my interest is going up, which means my terms will change. I do have a loan that is on nonaccrual and I don't want to lose that interest either.

Answer:

You need to be talking to several people, your legal counsel for how to extend or renew the loan, your accountants for how to account for the non-accrual interest, and your systems people regarding how you set the loan up on the system to facilitate the information your accountant provided.