We are doing a mortgage modification (1st lien position) and there is an existing 2nd mortgage lien that will remain in place.
When the GFE is prepared, do we include on line J the subordinate financing? If so, it would make the total PITI look proper, but it also shows on line P as cash to the borrower, which doesn't make sense. Or, do we put the subordinate financing in parentheses to negate it?