˟Calculated on
the full outstanding balance, $ 300,000, across the remainder of the loan term, which would be a 20 year amortization schedule.
˟Calculated on
the full outstanding balance, $ 300,000, across the remainder of the loan term, which would be a 20 year amortization schedule.
Also, in some plans, you may have to pay
your full outstanding balance.
Some plans require that you pay
your full outstanding balance at the end of the withdrawal period while others allow you to repay the balance over a fixed time.
Based on the financial picture of the borrower, Creditor X calculates a very small likelihood of collecting
the full outstanding balance.
By contrast, the second most common arrangement under which creditors work with debt collection companies, selling debt, requires debt collectors to purchase past due debts so that they can then try to come after the debtor for
the full outstanding balance (or as much of it as they can get).