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| For all examples assume the mortgagor paid December 1999, installment and failed to make all subsequent payments. |
| Example 1: Special Forbearance - Minimum Time Requiurement |
It is now March 2, 2000 and the mortgagor has furnished proof of the job layoff that created a decrease in income. He has also furnished verification from his employer as to when he will return to work full time. Including the March 2000, installment, the account is now three payments due and unpaid. If the borrower is cooperative and returns all requested documentation, the mortgage need not wait until the last day of the month to enter into a Special Forbearance with the mortgagor as the account is three payments due and unpaid. |
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| Example 2: Special Forbearance - Maximum Time Requiurement |
| It is now November 2, 2000, and the mortgagor was just released from bankrupcy. The mortgagor filed the bankruptcy in early February 2000, and the mortgagee could not take any action to initiate foreclosure pending the release of bankruptcy. Since being laid off in January 2000, the mortgagor returned to work full time in late October 2000, and may now make a full mortgage payment at a minimum each month. The mortgagee received all required documentation and established a Special Forbearance plan requiring a full payment for the months of January 2001 throught March 2001, and a payment and a quarter payment beginning April 1, 2001, until such time as the account is current. This plan would be acceptable because it does not allow the account to become more than 12 payments due ans unpaid. |
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| Example 3: Special Forbearance - Maximum Time Requiurement |
It is now November 2,2000, and the loan has been sold several times. No servicer took any action to engage in loss mitigation nor did any of the previous servicers request an extension of time. The "ABC" mortgage company just completed an acquisition and found this loan. Upon contact from ABC, the mortgagor was eager to discuss his options.
The mortgagor had encountered several setbacks including a medical emergency involving his child which contributed to an increase in his expenses. He has just begun a new job with good prospects and a raise scheduled January 1,2001. It was determined that a Special Forbearance was appropriate because the mortgagor could begin making full monthly mortgage payments in December 2000, with increased payment of one and a quarter payments beginning in February 2001.
This plan would be acceptable because it does not allow the account to become more than 12 payments due and unpaid. However, should this account not reinstate, and it later becomes necessary to foreclose and file a conveyance claim, interest would be curtailed to six months from the date of the original date of default. |
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| Example 4: Partial Claim - Time Requirement |
It is now April 6, 2000, and the mortgagor furnished documentation of the medical emergency that created both an increase in expenses and a decrease in income. He has also furnished verification from his employer as to when he will begin receiving workman's compensation, which including some supplemental benefits, will provide him with 90% of his former salary for a period of six months during his rehabilitation. His documentation also indicates that he would return to his former position at the end of his rehabilitation. His income will be sufficient to meet a full monthly mortgage payment, but will not be sufficient for any additional to be applied to the arrearage.
A Partial Claim is appropriate because the account is 4 payments due and unpaid, the mortgagor can begin making regular mortgage payments, but cannot offer any additional sums to be applied towards the arrearage. If the mortgagee is able to complete the Partial Claim before the end of April, it need not wait until after April 30, 2000, to submit the mortgage insurance claim for the Partial Claim incentive. |
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