[kmeade]

We have the right in our promissory note to add delinquent property taxes to the loan balance. Can we recalculate the payment amount to reflect the balance increase, with proper notice, without having something signed by the borrower so the loan still pays out at the original maturity? Properties not in a flood zone.

[kowsley]

You need to look to your contract and determine if it is covered within the contract. Usually the contract allows delinquent taxes to be added to principal, but doesn’t address how the additional amount will be repaid. Take a look at your contract if you haven’t already. If the contract is silent to recalculating the payment amount, the safest course of action would be to have the borrower sign an agreement to accept the new payment amount.

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