SCENARIO 3: Correct Payment Late excluding Late Charge received


This scenario is for when the Correct Payment is received but is LATE and EXCLUDES 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) but you DID NOT receive the Late Charge which is $36.46. The total expected was $965.63.

Enter $929.17 in Column E.

Entering Payment received Late Excluding the Late Charge

Since you only received the normal Payment Amount, now enter the Total to Apply in Column M which is $929.17.

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 exclulding the Late Charge applied

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

From the $929.17 applied, Columns S and T show that £36.46 was applied to the Late Charge and Column W shows that $692.71 was applied to Interest. There is nothing in Column X for Principal as this is an Interest Only loan. The amount To Interest should have been $729.17 but because the Late Charge was NOT received the amount to interest is reduced by the Late Charge amount.

Column AH shows that there was an under payment of $36.46 as the Late Charge was NOT added to the payment. Column AJ shows how much the payment should have been.

Image

Let Us Help

Get in touch if you’re having problems, need something specific or have questions about our spreadsheet.

Claim FREE upgrade

Existing customers of Lender Software Pro v1.7.x claim a FREE upgrade to v2.0.x

© 2023 Testament Research, Inc.

Get started for FREE Today. Register and Download NOW!

Want to Upgrade from Lite to PRO?. Upgrade and Unlock for $79.99

Microsoft® Windows® and Microsoft® Excel® are registered trademarks of Microsoft Corporation in the United States and other countries. Mac® and macOS® are trademarks of Apple Inc., registered in the U.S. and other countries.

By continuing to browse or by clicking 'Dismiss' you agree to the storing of cookies on your device to enhance your site experience and for analytical purposes. To learn more about how we use cookies, please see our Cookies Policy and Privacy Policy.