In addition to the special forbearance relief afforded by §§203.340 through 203.342, if the mortgagor is a person in the military service (as defined in the Soldiers’ and Sailors’ Civil Relief Act of 1940), the mortgagee may, by written agreement with the mortgagor, postpone for the period of military service and three months thereafter any part of the monthly payment which represents amortization of principal. The agreement shall contain a provision for the resumption of monthly payments after such period in amounts which will completely amortize the mortgage debt within the maturity as provided in the original mortgage. The agreement shall in no way affect the amount of the annual MIP which will continue to be calculated in accordance with the original amortization provisions of the mortgage.
Terms Used In 24 CFR 203.345
- Act: means the National Housing Act, as amended. See 24 CFR 203.251
- Amortization: Paying off a loan by regular installments.
- Forbearance: A means of handling a delinquent loan. A
- Maturity: means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage. See 24 CFR 203.251
- MIP: means the mortgage insurance premium paid by the mortgagee to the Commissioner in consideration of the contract of insurance. See 24 CFR 203.251
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: means the original lender under a mortgage and its successors and such of its assigns as are approved by the Commissioner. See 24 CFR 203.251
- Mortgagor: means the original borrower under a mortgage and his heirs, executors, administrators and assigns. See 24 CFR 203.251
- Payments: The mortgage shall:
(1) Come due on the first of the month. See 24 CFR 203.17