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Question about suspense funds after denial

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by discogirl, May 4, 2010.

  1. discogirl

    discogirl LoanSafe Member

    I have made 12 trial payments & I'm in underwriting right now. I am wondering what happens to the suspense funds if you are denied. Do they apply them to the loan amount? If they did, then I would still be only a couple months behind. I am starting to get really nervous & I don't want to get surprised in the end if I'm denied. Although, nothing really surprises me anymore after all this...
  2. Jillian118

    Jillian118 LoanSafe Member

    In my case, what they did was hold them in suspense until there was enough in the fund to make a full payment. So you are saying that they havent made any full mortgage payments from your suspense account for a year?

    and yes, they will apply them to your loan, add late fees blah blah blah...

    But i would be concerned regarding negative amortization... every interest payment that you miss, they tack on to the principle... So I would give them a call.
  3. discogirl

    discogirl LoanSafe Member

    I really am not sure how they're being applied. I see the payments show up as being made on my statement, but I have a balance showing of $15,000 owed. The payment shows up as a suspense fund & is then applied, but I guess they count it only as a partial payment. I'm worried about the $15,000 balance due though in the event I get denied...
  4. Bucky

    Bucky LoanSafe Member

    Any funds received that are less than the monthly payment due is placed in a suspense acct until it's large enough to make a regular payment. If that brings your acct current then any extra is applied to the principal. If you're still delinquent then the cycle will keep repeating.

    The terms of almost all mortgage contracts do not allow for partial payments, doing so would mean your mortgage company has agreed to accept whatever you decide to send in. They're able to accept forbearance payments because both you and the mortgage company agree in writing that it's temporary and you will resume your regular payments at a certain point along with bringing your loan current.

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