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I had a forbearance/trial modification plan and wanted to know what this means “Payments made under this agreement shall be held in suspense until sufficient funds are received to apply the next full payment due and the terms of the loan documents. All terms and conditions of the loan documents shall otherwise continue in effect and enforceable, including, but not limited to the accrual of interest and late fees as provided under the loan documents.”

2 Thoughts on Mortgage question – what does this mean exactly? Can you put it in simple terms?
  1. Reply
    likepepsi
    February 16, 2014 at 12:37 am

    This is how I understand it:

    If you make a partial payment (you pay something, but it is less than the full amount due at the time), it doesn’t count for anything until they receive enough from you to make up a full payment, and that’s when they apply it to your account. If they don’t receive enough from you to make a full payment until after the due date, they can still charge interest and late fees.

  2. Reply
    Eleonore
    February 16, 2014 at 12:57 am

    likepepsi:

    is what your saying…
    So basically, is it stating that:
    for 6 months, you will pay a less amount.
    After the 6 months, you will have to repay it?
    Does it state how it is to be repaid? (Put on the backend? or have a new formulated mortgage payment after 6 months?)

    Does it state that after the 6 months, if the amount is “not paid back,” then the mortgage payments will be considered late, and delinquency charges will start on credit reportings?

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