Description
A loan extension agreement is a mutual agreement between a lender and borrower that extends the maturity date on a borrower's loan. It is built into the loan docs were the borrower automatically gets a maturity extension.
Navigate to the "Loan Tab" and scroll down to the "Extension Options" section.
The default will be "none" for Extension Options:
Select the appropriate Loan Extension Option with the drop-down:
(a) "One Extension Option"
Use the drop-down to select: 10 Days, 30 Days, 60 Days, or 90 Days for the number of days prior to the current Maturity date the Borrower must exercise the extension option by. Use the drop-down to select: 3 Months, 6 Months, 8 Months, or 12 Months for the Extension Length in months and Input the Extension Fee Percentage. Example screenshot below:
(b) "Two Extension Options"
Use the drop-down to select: 10 Days, 30 Days, 60 Days, or 90 Days for the number of days prior to the current Maturity date the Borrower must exercise the extension option by
Use the drop-down to select: 3 Months, 6 Months, 8 Months, or 12 Months for the Extension Length in months and Input the Extension Fee Percentage
Check the box below and Input the Processing Fee for the extension
If applicable, Check the "Does this extension have additional conditions which must be met before extension will be granted" box, then include the information as it will appear in the documents
The diference between One Extension Option vs Two Extension Option:
c) "Unlimited/Discretionary Option 1"
d) "Unlimited/Discrectionary Option 2"
GoDocs Software Output Sample
The difference in the output in the loandocuments between Unlimited/Discretionary Option 1 (red text) and Unlimited/Discretionary Option 2 (blue text) is below:
Promissory Note:
Security Instrument:
