SCENARIO 3: Last Payment NOT Paid, Mid Month Payoff

In this third scenario, the borrower has made all their previous payments for January, February and March but not April 2021. They want a payoff commencing on May 15 2021.

Quick Links

Record Payments

Click on the Record Payments worksheet.

In our example image below, you will see that all the payments are up-to-date and entered, but the last payment for March 2021 has been accrued as it was not received at all.

You do NOT need to accrue the payment for May 1 2021 as this is collected at Payoff. However, if you have received a payment for May 1 2021 then you would enter it.

Record Payments worksheet last month not paid

To create your Payoff, click on the Payoff worksheet.

In our example, the date we want the Payoff to start is May 15 2021.

We entered 5/15/21 in Cell G2.

The lower section of your Payoff Statement will now look like the example below:


In our example loan, the loan is interest only and there is a balloon of $125,000.00.

No extra payments have been made to principal, so the outstanding balance is still $125,000.00.

  1. On May 10 2021, you will notice that the Payoff Amount is $126,710.55. This is because you are paying off in May and the April payment was not received. The May payment hasn't already been received and, because it's now the 10th of the month, a further 10 days of interest are due. The April payment includes the Late Charge as this was accrued on the Record Payments worksheet because the payment was not received.
  2. There is $200.00 shown as Charges, as this is what was entered in Cell G4.
  3. Additional Late Charges are shown, as the days before late is 10 days. From June 1 2021 they are zero again, which is because the Payoff has now gone into the month of June and on June 1 2021, the June payment is not yet late. Any previously accrued Late Charges are included in the Payoff.
  4. The amount in escrow to be returned to the borrower. If for any reason there are amounts that are NOT to be returned to the borrower as they have been spent, then you need to close out the escrow in Record Payments. Learn more about Escrow.
  5. The Total Payoff is the Payoff Amount + Charges + Late Charge if applicable - Escrow.
On May 10 2021, the Payoff you are expecting is therefore $126,110.55.

REMEMBER: If you DO NOT want Late Charges showing in (3) above, then click on the Dropdown in Cell O25 and select 'No' and all further Late Charges for the Payoff month will be zero. For example, you agreed with your borrower the final payment would be paid at Payoff so you're not waiting for a check to clear before closing, so charging a Late Fee is not appropriate.

What do you do when you receive your Payoff?
Learn how to apply your Payoff and close off your loan.

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.