Patent ID: 7702586

Claim:
A method by which a borrower may initiate a transaction with a lender relating to a mortgage or other loan, comprising the steps of: the lender establishing a reserve account comprising an account into which one or more prepayments of the mortgage or other loan are accumulated to establish credit funds; the borrower submitting or causing to be submitted a payment to the lender; to a limit that credit funds are available in the reserve account, the lender automatically by computer deducting credit funds from the reserve account if the payment is late or not paid in full; decreasing credit funds by computer in the reserve account, increasing a balance of the mortgage or loan owed, and raising a mortgage or loan payment in response to the deduction of credit funds in the reserve account; if credit funds are available, decreasing the reserve account by an amount equal to the payment or a shortfall in the amount paid and keeping the mortgage or loan obligation from default; and if credit funds are not available, defaulting the mortgage or loan.