Do Back Payments Matter To Mortgage Balance Bottom Line?

[Nick Zocher]

Extremely newbie question, but I'd love clarification.

I was speaking to a lead today who's bank statement said they had a remaining mortgage balance of around $500,000. The statement also highlighted that they had $60,000 of unpaid payments. Those $60,000 still fall within the overall $500,000 owed, correct?

It is my understanding that the bank only needs $500,000 to satisfy the mortgage, rather than $560,000, but I would love clarification before promising a certain amount of equity to the lead and being off by tens of thousands.

Thanks in advance,

Nick

[Victor N.]

Generally, you take the unpaid principal balanceand add accrued interest and late charges and subtract or add the escrow account balance to come up with the payoff.  Without seeing the statement we can't be sure but it sounds like the principal portion of the unpaid payments should be included in the total unpaid principal balance but not the interest and escrow parts of the payments.