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.

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