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Home Equity - Reduced Payment
Question: One of our HE customers is in ill health and needs to just pay interest only on his loan for a while. Can we permit this?
Answer: No. The official interpretations indicate that the constitutional requirement on payments means that at least some principal must be paid with each installment. You could modify and reduce the payments, but make sure that interest plus some principal is covered by each installment.
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Click here to see archive of all Legal Ease Q&A.
Comments & Questions
If you would like
to comment on legislative topics or if you have questions about this
information please call our public affairs expert, Mae Beth Palone at
(800) 749-4228 or E-mail mbpalone@ibat.org.
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