BLAW3314-3 - BLAW3314-3 Test 3 P498 Slow Loans P501 Payment for those periods when those periods when they are past due or late It is past due is 1

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BLAW3314-3 Test 3 P498 – Slow Loans – P501 – Payment for those periods when those periods when they are past due or late. It is past due is 1 day past the due date. You want to avoid LATE or delinquent. One test question on what is past due or late or delinquent Salvage Power – Federal Tradings and Loans have this power… lender restructuring the loan to meet the debtors needs [creditor can restructure the loan and increase the repayment period] P504 – Clauses of defaults Acceleration Clause – if you’re late on your payment they can declare the entire loan due now. For it to be recognized it must be in document Graph vs Hope Building p 505 Loan had been paid timely but one mortgage payment was late [but it was just a mix up in the office] Should the creditor be allowed to foreclose because the payment was just barely late and missed one payment? NY court said yes since it is in the contract Some courts adopted the rule where if this hurts the debtor a lot more than the creditor than the decision should not be made P506 – less strict about payment of real estate taxes and insurance premiums P506 at bottom… What is a prepayment penalty? If you pay the loan off early than you have to pay a penalty. It is basically making sure the lender gets the profit that is put into the loan. What if the creditor accelerate can they still hit you with a prepayment penalty? Not unless specified P507 Top Case The person had an acceleration clause and the court said that the lendee intentionally defaulted. His cash flow fell below his mortgage. The lender hit him with the acceleration clause
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This note was uploaded on 12/05/2011 for the course OPMA 3306 taught by Professor Christychen during the Spring '11 term at University of Texas at Dallas, Richardson.

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BLAW3314-3 - BLAW3314-3 Test 3 P498 Slow Loans P501 Payment for those periods when those periods when they are past due or late It is past due is 1

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