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Posted

Participant was out on disability and hi loan payments were suspended for a year. The year was up 3/15/2015. Does the loan become incurable on 3/15/2015, or 6/30/2015 (i.e., the last day of the quarter following the quarter)?

Austin Powers, CPA, QPA, ERPA

Posted

The cure period starts with the date the missed payment was due. [1.72(p)-1 Q&A 10 (a)]. If they were current on payments going into the suspension, the next payment would be due after the end of the suspension. I'd say 6/30/2015.

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