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Company Loan Type APR Est. Pmt.

Forbearance Suspense

I have 30 yr fixed interest mortgage. To make things easier, I pay bi-weekly. This is not something that is set up by the lender. I just pay half every time I get paid. I actually pay more, about $200 extra each month. When the first payment goes through, it gets listed as a Forbearance Suspense. Granted, this is not the whole payment. Also, my extra amount that is paid gets listed as the same, and then gets adjusted to the principle.

What does this mean? Am I getting screwed?

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi amize!

The Forbearance Suspense Account shows those payments which are not yet applied to principal, interest, or escrow. They remain in this account unless they are properly designated. No, there is nothing to be get screwed here. The lender takes some time to decide in which account he will be depositing the money that you pay him. During this time period, he keeps the money in the forbearance suspense account. Once he decides, he transfers the money in the respective account.

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I was not able to lpay the full amount of my mortage and I paid all but 200 of it. I now see that the money is in a forbearance suspense? can you explain? and will this go towards my payment?

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi onelove,

Since the mortgage payment you made was short of your original monthly payment by $200, it seems the lender has temporarily kept the money in a forbearance suspense account. When you make the full payment and get current on the mortgage, the lender will apply it towards PITI. Have you talked to the lender regarding this? What explanation has he given you?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am two months behind on my mortage. Litton Loan Servicing is the Lender. The divided my two months of payments into one year and added it to my monthly payments. After one year they say I will be caught up. Is this trkue? If I can make one of my late monthly payments do you think that all will be applied to my debt owed?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:51 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lemo!

Welcome to forums!

As far as I can understand, your lender has spread the default payments over the year so that it doesn't become a burden for you. If you are able to pay off one of your late monthly payments, then it will be applied to the debt owed.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Lemmo, beware Litton Loan Servicing... they are screwing us over on our loan, saying we missed a payment, even though we have proof that checks cleared each month for our mortgage. We missed one payment when my husband lost his job but made up the payment and all late fees when he found a new job. Then Litton enrolled us in a HAMP (loan modification program) even though we didn't need it, changed our payments for 6 months, then said we didn't qualify for the HAMP. To top it off, they said we were behind a months payment AGAIN because of the voodoo math they do when they receive your mortgage payment every month. We are still fighting them about this, but every time you call and speak with someone there, you get a different story. Litton Loan Servicing is the WORST mortgage company we have ever dealt with, and if we could switch companies, we would in a heartbeat.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I HAD THE SAME PROBLEM WITH LITTON, CONTACT NACA.COM AND THEY WILL HELP U ON HOW TO DEAL WITH LITTON

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We're having a problem with Litton where they miscalculate my monthly income every time I apply for HAMP. How was NACA able to help you with Littton? Access to Litton is shrouded with customer service people who work only to prevent you from getting a solution.

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