What Does Deferred Principal Mean on a Mortgage Statement?

Trying to understand how what Does Deferred Principal Mean on a Mortgage Statement matters today? Read our breakdown with up-to-date information.

A portion of the principal debt amount owed on a loan that is allowed to be repaid at a later date. Typically this amount is deferred due to the inability of the borrower to maintain current payments. This allowance is extended in lieu of foreclosure or collection action. What happens if you defer a mortgage payment?

What is the deferred principal balance in POC 2?

The Deferred Principal Balance remains collectible in accordance with the terms of the May Loan Modification Agreement and is a proper component of U.S. Bank’s total claim in POC 2-1. The New Principal Balance less the Deferred Principal Balance shall be referred to as the “Interest Bearing Principal Balance” and this amount is $181,665.60.

When does a servicer forgive a deferred principal balance?

Unless I default on my new payments to the extent that three (3) or more monthly payments become overdue and unpaid on the last day of any month, then the Servicer shall forgive one-third of the outstanding portion of my Deferred Principal Balance on each of the first, second and third anniversaries of the Modification Effective Date, respectively.