Need some ideas

[Maf. King]

On Saturday 24 January 2009 18:34:10 Steve wrote:

> There was no pay off of the original mortgage. The first people abandoned
> and the second buyer just brought a downpayment. Where would I transfer
> funds from to close out the 1st mortgage?
>

Hi,

The way that I see this: you have an asset - which is either a house, or a 
mortgage loan to others (or possibly a combination!).

The first (defaulted) mortgage would be cleared by reducing that loan asset to 
0.00, but adding that value back into the assets:property1 account. (you said 
in your 1st post "I got the property back in my name." - gnucash should 
reflect this asset ownership)

If the subsequent purchasers didn't think that the house was worth what you 
thought it was, and so you sold it for less than your "book value", you'll 
need to adjust asset:property1 downwards, before recording the sale (and 
transfer of asset to the new mortgage account)

IANAA, but that is how I'd do it (until told otherwise by the professionals!). 
HTH,
Maf.