Apply one borrower payment to multiple loans

Handling payments and adjustments, running reports, doing your accounting with Moneylender.
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mark415
Posts: 23
Joined: Tue Sep 28, 2021 10:17 pm

Apply one borrower payment to multiple loans

Post by mark415 »

How would I apply one borrower payment between two loans? Thanks!
wtech_josh
Site Admin
Posts: 101
Joined: Tue Jul 30, 2019 7:17 pm

Re: Apply one borrower payment to multiple loans

Post by wtech_josh »

The short answer is you'd record two payment records - one on each loan - and put the same info in the description section. So the check number would be the same on both of those payments. You might even add a note in the description indicating that you recorded a split. For example:

Check #0454 for $850
Record payment on loan 000101 for $350 with description "ck#0454 (split with loan 000102)"
And a second payment on loan 000102 for $500 with description "ck#0454 (split with loan 000101)"

So if you ever had to prove that the borrower received proper credit for their payments, you can immediately see how the entire check was credited whether you're starting with the first loan or the second.

If you were certain that you'll always be paid on time, and both loans have the same interest rate, you could finagle the parent-child mechanism in Moneylender to have a "parent loan" that is the sum of the two loans, and then both of the actual loans are children of the parent loan. Then a payment to the parent could auto-generate payments on the child loans, and if done right, the child payments would add up to the parent payment. But the benefit of having the splitting be automated isn't likely to outweigh the problems that would arise if either loan got out of sync with the whole system.

Do you expect to receive a lot of checks that are intended to pay two or more loans? I could add something to the tools menu where you can put in a single amount and description and then it'll let you adjust the split amongst whatever loans are currently selected in the main window and record the separate payments for you... ??
mark415
Posts: 23
Joined: Tue Sep 28, 2021 10:17 pm

Re: Apply one borrower payment to multiple loans

Post by mark415 »

Thanks Josh.

After considering this I decided to combine the two loans into one for the purposes of Monelender. The loans are essentially identical (2 notes secured by 2 deeds of trust at the same interest rate with the same terms and due date.) So that should work best.
wtech_josh
Site Admin
Posts: 101
Joined: Tue Jul 30, 2019 7:17 pm

Re: Apply one borrower payment to multiple loans

Post by wtech_josh »

Sounds like a good approach for your situation. :)
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