What's a "cure default" amount for a private loan?

My father (now deceased) made private loans to individuals. For one loan, which he sold to a third-party, his records show the following amounts: $71,000 loan balance 600 unpaid late fees 7,000 unpaid interest 13,000 cure default 800 processing fee

What is the amount identified as "cure default"?

I assume that is the amount that he got from the third-party for the loan. Furthermore, I assume that the "processing fee" was charged by the third-party. Is it likely that the "cure default" amount is net the processing fee; or would the "cure default" normally amount include the processing fee? Since "processing fee" is listed separately, I assume the "cure default" amount is net that fee. But I don't know what is customary for recordkeeping.

Note: My father was an attorney and a CPA. He probably would have followed generally accepted accounting practices in his recordkeeping.

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Reply to
nomail1983
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I googled "cure default." From the hits, I deduce the "cure default" amount is the amount needed to make an installment loan current -- that is the amount of payments in arrears on the loan. I didn't read far enough to figure out whether other fees (such as processing) are included in the "cure default" amount but I would consider it misleading if they were not.

Reply to
Bill Brown

It depends on the specific contract, but in general that's correct. The amount necessary to cure the default is the amount necessary to reinstate the loan to its former status. That means paying anything in arrears, plus interest, penalties, costs of sending the notice and possibly some attorney's fees. Stu

Reply to
Stuart Bronstein

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