Posted by emilysigns on 12/19/12 7:07pm
Msg #447137

What a fun day!

I am getting the happiest people today, it's weird. All my BO's are in the *best* moods!

You know, when they are SO happy to see you, it's almost suspicious? You begin to wonder if they have been drinking....at 9:00 am. haha. Nope, just glad to see me!

Let's hope the party continues....

Reply by MW/VA on 12/19/12 7:15pm
Msg #447138

I've been dealing with happy borrowers lately, too.

Low interest rates are saving them hundreds of dollars a mo., plus skipped Jan. payments. I almost feel like Santa Claus! HoHoHo! :-)

Reply by Pro Mobile Notary on 12/19/12 7:59pm
Msg #447145

Re: I've been dealing with happy borrowers lately, too.

There is no such thing as skipped payments.

They are paying the January interest payments on the old and new loans through the close of escrow.

Reply by MW/VA on 12/20/12 8:13am
Msg #447185

True, but they're not making a Jan. mtg. payment. Yes,

they're still paying the interest & it's been added into the closing costs.

Reply by Linda_H/FL on 12/20/12 8:39am
Msg #447191

If the loan funds and December - and payoff is

calculated through December, they are not paying any January interest at all - the January interest is paid with the 2/1/2013 payment (interest is paid in arrears). So they do skip a payment.

Reply by Donna McDaniel on 12/20/12 8:55am
Msg #447194

Linda, set me straight...

If the loan funds on Dec 15, interest is included up to that date.

The new loan begins on Dec 16 and accrues interest from that date and interest is prepaid until the end of the month.

No payment is made in Jan but the interest still accrues until they make their first payment in Feb which is mostly interest.

What am I missing here?

Reply by Linda_H/FL on 12/20/12 9:06am
Msg #447196

They make no payments until 2/1/13

Interest may accrue but there is no payment made in January.

I'm not quite sure I understand your question. PMN stated there is no such thing as a skipped payment...I disagree. In fact, many times if the closing takes place early enough in the month, borrowers can feasibly skip the current month payment AND the next month payment...

Example: Close 12/5/12 - fund 12/10/12 - payoff reaches current lender before 15-day cutoff, first payment on new loan not due until 2/1/2013 - 2 full payments "skipped".

Reply by NVLSlady/VA on 12/20/12 11:34am
Msg #447222

Donna, that's how I've always understood it.

I remember renting out my property just after mid month. Collected 1st month's rent the following month, which included those "leftover" days prorated from previous month. No "skipped" payments there - just a slight deferment

Reply by Donna McDaniel on 12/20/12 8:45am
Msg #447192

Perception is Reality.

If the borrowers perceive the deal as "woo hoo!...I get to skip a payment!", then that is their reality and that makes them happy campers.

Most of them don't know the difference and most of them don't care. I believe the lenders prefer it that way.

Reply by Shoshana/AZ on 12/20/12 1:46pm
Msg #447248

Re: Perception is Reality.

I believe that's dishonest. There's no such thing as a free lunch! One way or another, they are paying for it.