Unscheduled recast
Unscheduled recast
Unscheduled recast is a recalculation of payments due on a loan that's triggered by something other than the passing of time since funding. Unscheduled recasts are usually triggered by certain events, which would be specified in the loan documentation. Negative amortization mortgages are subject to unscheduled recasts; when the balance reaches an upper limit on the negative amortization, a recast is triggered. In this case, the recast will increase the payment amount substantially.
5.90
