SCENARIO 2: Correct Payment received Late inc. Late Charge

This scenario is for a Payment received LATE but including the Late Charge.

For this scenario the Payment is expected to increase by the Late Charge Amount as the payment is Late.

Click on the Record Payments worksheet.

In our example, the first payment is due March 1 2021.

We received this payment on March 18 2021. Enter 3/18/21 in Column B.

Note that you can now see the Amount Due in Column C as soon as the date is entered into Column B.

The Amount Due is shown as $965.63 and NOT the usual payment amount which is $929.17 (including $200 escrow). This is because a Late Charge has been added as the payment date of the 18th of the month is late as the grace period is 10 days, meaning that any date from the 11th of the month would be automatically late.

In this example you received the normal monthly payment of $929.17 (including $200 escrow) and you received the Late Charge which is $36.46, total $965.63

Enter $965.63 in Column E.

Entering Payment received Late including the Late Charge

Since you received the correct Payment Amount, now enter the Total to Apply in Column M which is $965.63.

You will note that the $200 escrow payment has been Applied to Escrow in Column N. If you are not escrowing, nothing will appear.

We have also added in the Check Number in Column H and the Cleared Date in Column I for clarity.

Payment received Late including the Late Charge applied

To see how your payment has been applied, scroll to the right to Columns S onwards.

From the $965.63 applied, Columns S and T show that £36.46 was applied to the Late Charge and Column W shows that $729.17 was applied to Interest. There is nothing in Column X for Principal as this is an Interest Only loan.

If the Late Charge had NOT been added to the payment, then you would see in Column V the Payment Amount minus the Late Charge and in Column AH an under payment of $36.46.


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