B of A post-discharge loan mod charging interest on unpaid inter...
Posted: Tue Jul 30, 2013 3:25 pm
Capitalizing interest happens all the time with lenders. Why is the thisunfair to the borrower? It is not a windfall to the Lender as the Lenderwas supposed to be paid interest and the borrower did not pay it. Lenderlost out on the use of the unpaid interest. In consideration for allowingthe debtor to add the interest to principal debtor agrees to pay interest on
it so the lender is not out the return on that unpaid interest for another10-30 years.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868 (805) 497-5864 (Facsimile)
NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENTOF THE TRANSMISSION, AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY
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In a message dated 7/30/2013 3:06:56 P.M. Pacific Daylight Time,
lyounglaw@yahoo.com writes:
I have clients who received a BK discharge in March 2013. They have been in a trial mod for 4 months and received a letter from BofA that said
"Congratulations. Your loan modification has been approved."
The terms are generally favorable except this: Of the $41,864 arrearange,$34,108 is late interest. The terms include this phrase: "I also understand
that this means that interest will now accrue on the unpaid interest thatis added to the outstnding principal balance, which would not happen wihout
this Agreement."
I've heard where a bank will put the unpaid interest at the end of loan
with a balloon payment, but it does not accrue interest on the interest.
Has anyone had any experience with fighting this? This seems unfair. I'm
continuing to research but hope someone can give me some advice on how toargue with the bank. Thanks,
Laura E. Young
Potier Law Group
5090 E. Los Coyotes Diagonal
Long Beach CA 90815
Phone: 562-986-9900
Fax: 562-986-9100
Capitalizing interest happens all the time with lenders. Why is the
this unfair to the borrower? It is not a windfall to the Lender as
the Lender was supposed to be paid interest and the borrower did
not pay it. Lender lost out on the use of the unpaid interest.
In consideration for allowing the debtor to add the interest to principal
debtor agrees to pay interest on it so the lender is not out the return on
that unpaid interest for another 10-30 years.
Mark T.
JesseeLaw Offices of Mark T. Jessee"A Debt Relief Agency"50 W.Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805) 497-5868 (805)
497-5864 (Facsimile)NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY
THE INTENDED RECIPIENT OF THE TRANSMISSION, AND THIS COMMUNICATION IS INTENDED
TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED.
PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND PLEASE DELETE
THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
In a message dated 7/30/2013 3:06:56 P.M. Pacific Daylight Time,
lyounglaw@yahoo.com writes:
I have clients who received a BK discharge in March 2013. They have been in
a trial mod for 4 months and received a letter from BofA that said
"Congratulations. Your loan modification has been approved." The terms
are generally favorable except this: Of the $41,864 arrearange, $34,108 is
late interest. The terms include this phrase: "I also understand that this
means that interest will now accrue on the unpaid interest that is added to
the outstnding principal balance, which would not happen wihout this
Agreement."I've heard where a bank will put the unpaid interest at the
end of loan with a balloon payment, but it does not accrue interest on the
interest.Has anyone had any experience with fighting this? This seems
unfair. I'm continuing to research but hope someone can give me some advice on
how to argue with the bank. Thanks,Laura E. YoungPotier Law
Group5090 E. Los Coyotes DiagonalLong Beach CA 90815Phone:
562-986-9900Fax: 562-986-9100
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