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A Note On A Balloon Payment Is Due At Maturity

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1) A reduction in interest rate to 5.25%. The current rate is fixed at 6.75%;

Monthly payments to be based on a 25 years amortization schedule. There is no change in the maturity date of December 5, 2019. A balloon payment is due at maturity.

Effective July 5, 2015, the monthly P+I payment (including escrow) on Note A would be approximately $5,370.00.This is a reduction of approximately $1,000 from the current monthly payment level.

Note A will consist of the current principal balance of $634,950.99. The Note B’s principal balance will be $24,024.63 that includes accrued but unpaid interest of $14,334.56, negative escrow of $3,177.55, and late fees of $6,512.52.

Note A will be booked as accruing TDR while the Note B will be charged-off.

SIGNIFICANT POLICY EXCEPTION(S) (LIST & PROVIDE JUSTIFICATION - ATTACH EXCEPTION CHECKLIST IF A NEW EXCEPTION IS BEING CREATED)

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BACKGROUND/OVERVIEW: The borrower is a R/E holding company for a property located at 52 Oak Ridge Road, Oak Ridge, NJ 07438. The property consists of a deli, a vacant retail store, a rented apartment on the second floor, and approximately 3 acres for land that is approved for 25 parking spaces.

Until early 2012, Mr. Abdallah Bazbaz (the guarantor) had a property manager who rented the parking spaces for a fixed monthly payment of $3,500. The property manager was responsible for renting the parking spaces, and for the collection of rent. However, since the property manager left in early 2012, the

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