Need some ideas

[Mark S]

I would suggest renaming the account to reflect the mortagee, pay off 
the first accounts with the proceeds from the sale and open a new 
account for the new mortagee. This will help to keep your books clean if 
either person decides to sue you.

Steve wrote:
> Hi,
> I need some help setting up some new accounts to handle an somewhat unusual situation. I'll try to keep this a brief as possible.
>
> I own a mortgage - in other words I am the bank in this situation so I set up some accounts like this:
>
> Assets
>    Property
> Income
>    Interest
>       Property
>
> In the beginning, Assets->Property contains the amount of the mortgage and each month's check decreases that account by the principle and the remainder is the interest. (Ignoring escrow)
>
> Like many people, the owners got behind on their payments and one day I found out they had just left. After some time, working through the legal system I got the property back in my name. There were expenses involved with this and so I created a new account Expenses->Property. 
>
> I refurbished the property - new sub-accounts of Expenses->Property, put it on the market and recently sold it. I hold the mortgage for the new buyer also.
>
> So my question is: how do I handle the transition? Do I continue to use the same Asset->Property account to track the principle owed and adjust the amount with a capital gain/loss transaction for the difference between the old mortgage and the new mortgage? Or would it be better to somehow close out the old mortgage and create a new account Asset->Property2? Is there a right way to do this or is any way OK?
>
> I'm looking for some ideas.
> Thanks
> Steve
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>
>
>