If you would like to join the Automatic Debit Program or open a depository account, the Bank will be happy to assist you. The Bank will charge your depository account only once for the month you had insufficient funds. If the account has insufficient funds, the Loan Servicing Department will continue to debit your account to obtain payment until the grace period expires. If your designated depository account is with Abacus, it may be a checking or savings account. You must then mail in the payment for that month before the grace period expires to avoid the late payment penalty. To avoid repeated charges by your depository bank, Abacus will not attempt to debit your depository account again for the same month’s mortgage payment. You will also be charged a fee by Abacus against your loan account. If the account has insufficient funds to meet the mortgage payment on the due date, you will be charged a fee by the depository bank. If your depository account is with another bank, it must be a type of checking account. This is truly the simplest way to make sure that your mortgage payment is made on time. However, you must maintain sufficient funds in your depository account. Under this Program, you are relieved of the burden of remembering the mortgage payment due date and ensuring that the payment is received by our Bank. With your authorization, the Bank will automatically charge your depository account at Abacus or another bank on the dates chosen by you: 1st day, 7th day, or the last day of the grace period for your loan of each month (unless it is a bi-weekly mortgage). To assist its borrowers to pay mortgage installments on time, the Bank has established an Automatic Debit Program. To allow a late payment to occur is simply too costly. It is a good idea to plan your mortgage payment ahead. You are given a grace period of 10 or 15 days depending upon your loan agreement. Making your loan payment on time is, therefore, very important to you.īased upon your mortgage agreement, your monthly installment payment is to be paid on the first day of each month unless your loan is a bi-weekly loan. If you maintain a good credit record, you will be able to easily obtain refinancing in the future, or new financing to purchase a new home or for business at a favorable rate. Late payments will also generate penalty and interest charges. A few late payments will quickly cause your credit rating to drop. Each time a payment is received late, it is automatically reported. The Bank is under obligation to report the payment history of its borrowers to credit bureaus. Making your loan payment on time is one of the best ways to build a strong credit record. More efficiently, loan payments can be made conveniently by using the Bank’s Automatic Debit Program (see item B, below). Loan payments can be made by mail or through the Bank’s branches in the form of cash, check, money order, or cashier’s check.
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