I filed bankruptcy last year and my home loans were not reaffirmed. I applied for, but did not receive, a loan modification on my first mortgage. They did offer me a repayment plan. They have put my home equity loan (same bank) in non-accrual status. What does this mean? Will the second mortgage be written off at some point, or just not accruing interest?
Although the loan has not stopped earning interest, the bank has stopped recording the interest as income on its books, because that overstates its income in the event it never receives the interest earned.
It is strictly an accounting procedure, which does not by itself affect the amount of interest you are billed.
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Although the loan has not stopped earning interest, the bank has stopped recording the interest as income on its books, because that overstates its income in the event it never receives the interest earned.
It is strictly an accounting procedure, which does not by itself affect the amount of interest you are billed.
