This was also posted in a state forum, and I understand that state laws may possible affect the answer to this, but nonetheless I was just wondering in general.
Is it permissible to specify a later maturity date on the deed of trust than stated on the note for which the deed of trust is collateral?
For example, a 12 month note is issued for a construction loan. Just to be prudent, in the event that there are delays in completion, could the deed of trust have, for example, a 24 month maturity date? At the end of the 12 months, if more time is needed, could you then do a modification/extension without having to record the modification/extension document as long as the stated new maturity date does not exceed the date specified in the deed of trust originally? Taking this a bit further, could your deed of trust maturity date be, for example, 20 years later, just to provide for a case in which the builder might elect to retain the property for rental purposes? Thank you for your time and assistance.