Legal Question in Real Estate Law in New York

Re: penalty to apply to someone behind 23 morgage payments

What does the mortgage say?

Call me with questions if you'd like.

RRG

Re: penalty to apply to someone behind 23 morgage payments

I presume that the mortgage covers this by assessing late payment penalties, as well as continuing interest. Your staring point would be the balance due after taking into consideration that 23 payments were missed. For example, if it were a 15 year mortgage (180 payments) take the current payment date and go back 23 months to get a balance. If the mortgage allowed for late payment penalties, these would be added, plus interest from that date on that balance due. This may be a difficult calculation and you may want an accountant to assist you in making it, as you would have to reconstruct interim interest due between payments as well. For example, he made three payments and skipped the 4th, which was paid a month late - 30 days interest would be due and added to the balance at the end of the 3rd month to determine what was due for the 4th payment. The underpayment would be added to principal to determine interest due and, if not paid, would increase the principal on which the next payment would be due. This calculation must be done for each missed payment. This all assumes the mortgage allows late charges and interest continues when a payment is missed/late.

Re: penalty to apply to someone behind 23 morgage payments

The answer is a matter of plain mathematics. We need to read your mortgage to give you the correct answer. Usually, though, you apply each payment in the order in which you receive it. For example, if you have received 90 payments in 100 months, the mortgagor is 10 payments behind. Interest on the last ten payments would then be due. And late fees, if the mortgage imposes them. You should call us right away to set an appointment. We will help you figure this out. (212) 387-7787.