Peoples Bank Offers Loan Payment Deferrals
March 23, 2020
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Peoples Bank will be applying a unilateral payment deferment of up to three (3) months of your existing loans that:
- Have a payment due now or within the next 90 days, and
- Are not currently 90 days or more past due, or in bankruptcy
This is automatic. It will defer your current loan payment for up to three months. If you don’t want this deferral, just call to have it removed. You CAN make payments during this time if you would like.
*Program details below
*Deferment Program Details:
This deferral of loan payments for up to three months will apply to most Peoples Bank loans with periodic payments due on or before June 30, 2020 (excluding loans already 90 days or more past due as of March 20, 2020 or in bankruptcy). After this deferral period has elapsed, your previous regularly required loan repayment schedule will resume. An accounting of the sum portion of your loan payments (including principal, interest, and any required escrow payments) designated as deferred during this period will be provided to you at your request. The deferred loan payments will be due and payable at the earlier of your election to repay subject loan in its entirety or at loan maturity. Interest will continue to accrue. This deferral shall not be construed as a forgiveness of debt, but represents an accommodation provided to Peoples Bank customers to provide relief during this time of crisis. All other terms and conditions of your existing promissory note, mortgage/deed of trust and other borrowing requirements shall continue to be valid and govern.
Borrower should note that this loan deferral will have the following impacts:
- Interest on your loan will continue to accrue during the deferral period and, to the extent principal payments are deferred, you will incur additional interest.
- Principal will not be reduced during the deferral period unless you voluntarily make payments, which will be applied to interest first, then principal.
- Unless you later elect to repay subject deferred loan payments earlier, you will have a balloon payment of the amount of any deferred payments at the loan maturity. At maturity, we will work with you on any balloon payment resulting from the deferral.
- The maturity date will not be changed.
- Payments under your existing payment schedule may not be sufficient to fully amortize your loan. If you had a scheduled balloon payment, it will increase if payments are deferred.
- If this loan is a revolving line of credit or other interest only loan, deferred interest will be due at the next payment date, but we will work with you if necessary.
- No late charges will be assessed on payments that are not past due.
- Payment deferral does not affect real estate borrowers’ escrow payment obligations, which may result in some consumers incurring escrow shortages or deficiencies. Escrow may include, where applicable, property taxes, flood insurance, and hazard insurance. If escrow were to incur a shortage or deficiency, your future payment obligation, after analysis, may increase.
If you wish to continue making your regularly scheduled loan payments, you are free to do so.