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What are forbearance suspense and principal curtailment?

Posted on: 24th Sep, 2008 02:07 pm
what is forberance suspense and prinicpal curtailment?
I keeping sending my payment within the grace period sometimes before the 1st due date, I send extra prinicpal and whatever the amount they charge either one of those two, and my extra $$ is not applied to the prinicpal. So what gives if I send extra. I feel and see that its useless money really going down the drain. I dont understand it.
Diana
Hi Diana!

Welcome to the Forums!

Forbearance Suspense Amount means any payment amounts which are not yet applied to principal, interest, or to the escrow. The funds will be remaining in a Forbearance Suspense Account unless they are properly designated. Principal curtailment is considered to be an additional payment which is paid directly against your loan's principal balance.

So the extra amount which is not applied to the principal is your forbearance suspense amount and is kept in your forbearance suspense account.

Feel free to ask if you have further queries.

Sussane
Posted on: 24th Sep, 2008 08:03 pm
Hi Diana!

That amount which is not applies to interest, principal or escrow is known as Forbearance Suspense amount. Your extra amount is deposited in the forbearance suspense account.
Posted on: 26th Sep, 2008 02:06 am
What is suspense adjustment?
Posted on: 05th Nov, 2010 02:33 pm
As far as I know, it might be distribution of money from your suspense account. You should contact your lender and he will be able to explain it to you in a better way.
Posted on: 05th Nov, 2010 09:52 pm
can interest compound on a loan that has a fixed rate?
Posted on: 04th Jun, 2011 09:40 am
Hi Lilly!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/loantalk/compoundinterest-frm.html

Please take a look at it. I hope it will help you.

Sussane
Posted on: 05th Jun, 2011 10:24 pm
Hi, i recently got a letter saying i was aproved for a special forbearance. I will be making a payment amount for less then my regular montly mortgage for 6 months. they told me the money will go into a suspense account. Why they do that? They told me that if my loan gets a modification that money will be added to my loan but what happens if i dont get a loan modification? What happens to the money?
Posted on: 30th Jun, 2011 08:00 pm
Hi mary,

If you don't get a loan modification, then you will use the money in order to recover the past due payments.

Thanks
Posted on: 30th Jun, 2011 11:19 pm
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