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Based on the limited information that I've found-- the homeowners may have been negotiating a modification or some other terms with the lender; or payments were received that were less than the amount that is in arrears. The bank refunds the amount that was "misapplied" to the mortgage during that period and proceeds with foreclosure. The banks state they could not accept less than the full amount including fees many of which ate not explained in written form. Hope this helps some. Ann

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Q: What is a misapplication reversal check?
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