This refers to added funds that are paid out to the borrower by the mortgage lender once “good news” event happens. An example of this is an owner ending a lease agreement with a long term tenant in the building or coming to a pre-planned net operating income. The funds are then put towards the balance on the outstanding loan. Good news money is often susceptible to the underlying loan’s same terms.
Good News Money
This refers to added funds that are paid out to the borrower by the mortgage lender once “good news” event happens. An example of this is an owner ending a lease agreement with a long term tenant in the building or coming to a pre-planned net operating income. The funds are then put towards the balance on the outstanding loan. Good news money is often susceptible to the underlying loan’s same terms.
