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Chapter Processing Balloon/Reset Mortgages Contents Topic Page Overview Certifying Balloon Loan Modifications Loan Modification Custody Freddie Mac Document January 2010 A Balloon/Reset Mortgage is a fixed-rate level payment Mortgage with principal and interest payments based on an amortization schedule that would pay off the principal balance in 360 months. The unpaid principal balance UPB of the Balloon Note on the Balloon Maturity Date is due as a lump sum after either five or seven years...
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