Below is an excerpt from a home loan contract.

“the sum of the principal of the loan and all applicable interest will be divided into 360 monthly payments according to the amortization schedule.

the buyer shall make each monthly payment by the first day of the month it is due. a payment not received by the first day of the month it is due will be considered delinquent. a payment not received by the fifteenth day of the month it is due will be subject to a late charge of $75.00. if a payment is not received by the last day of the month it is due, the buyer and transaction shall be reported to the appropriate credit agencies.

in the event of delinquency, the buyer may divide any payment not received into not more than three equal installments to be included on the next consecutive monthly payments. notification of the buyer’s intent to do so must be made by written letter or phone call to the phone number and address listed below within one business week of delinquency.”

according to the contract, which of the following is not a responsibility of the buyer?
a.
pay the monthly payment on time.
b.
notify the bank if a payment is going to be late.
c.
pay an additional $75.00 with a payment made after the 15th day of the month it was due.
d.
notify the bank of his or her intent to split a late payment into three partial payments.

select the best answer from the choices provided

the answer is b

Answers

Option B

Step-by-step explanation:

As per the contract

"The Buyer shall make each monthly payment by the first day of the month it is due."

this makes option a :"Pay the monthly payment on time." responsibility of the buyer.

"A payment not received by the fifteenth day of the month it is due will be subject to a late charge of $75.00."

this makes option c :"Pay an additional $75.00 with a payment made after the 15th day of the month it was due." responsibility of the buyer.

"Notification of the Buyer’s intent to do so must be made by written letter or phone call to the phone number and address listed below within one business week of delinquency.”

this makes option d :"Notify the bank of his or her intent to split a late payment into three partial payments." responsibility of the buyer.

So,buyer needs to only notify the bank about the monthly payments in case of delinquency and not about if payment is going to be late or not.  

Hence Option B is correct  

Notify the bank if a payment is going to be late!

b

Step-by-step explanation i just took the test

B. Notify the bank if a payment is going to be late.

Explanation:

The only requirement to notify the bank about any developments around monthly payment involves only the buyer’s intention to split the overdue payment into three subsequent payments, which should be added to the ongoing regular payments.

If the buyer knows that he or she will not be able to pay the loan payment on time and notifies the bank, it is not going to help the buyer to avoid penalty of 75 in case if the payment is overdue for more than fifteen days.



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