Prorated Tax Payment

Tell Moneylender how to do calculations for you loans. Get the numbers to come out the way you want.
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wtech_josh
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Posts: 50
Joined: Tue Jul 30, 2019 7:17 pm

Prorated Tax Payment

Post by wtech_josh » Thu Oct 22, 2020 3:31 pm

I have a loan where the borrower owes $1,400 for pro-rated property taxes. This was not collected at closing but is due before December 31st. What is the best way to enter this into Moneylender?

My thoughts were to enter it as an escrow charge that’s due on December 31st? I want to be sure that it does not get recorded as interest or get applied to principal.

wtech_josh
Site Admin
Posts: 50
Joined: Tue Jul 30, 2019 7:17 pm

Re: Prorated Tax Payment

Post by wtech_josh » Thu Oct 22, 2020 3:33 pm

This has an easy answer – add an adjustment of $1400 to the EscrowDue account (Settings tab > Adjustments section > New (plus) button > set account to EscrowDue). This tells Moneylender that there’s $1400 scheduled to be collected into the escrow account. Because regular payments always pay any escrow due first, recording that deposit as a regular payment (or any amount of money as a regular payment) will automatically allocate these funds into the escrow account before putting them anywhere else. Set the date on the adjust to the origination date on the loan.
escrowdue adjustment.png
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