You are right ... a mortgage company does not report a 30 day late payment until AFTER the end of a given month.
Congratulations on your sale!
Call your mortgage lender and ask them what to do and how any reimbursement works.
Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure & Investment & Short Sale Specialists,
Development Opportunities & Traditional Real Estate
Joan Wilson (Realtor, SRES, Ecobroker)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
License # 01341483
It is my Goal to Increase the Success and Profitability of Those I Serve
This question gets asked a lot from sellers and sometimes when a homeowner is refinance their existing mortgage. Your lender will most likely charge the late fee if not paid by the 15th. You mentioned you are scheduled to close escrow on the 28th. As it gets closer to that date you'll want to keep a close eye on anything that might delay the close a day or two or even a week. Sometimes there could be a slight delay waiting on the Buyer's new loan to fund. Hopefully, your agent keeps in close contact with the Buyer's agent.
If it looks like escrow is going to be extended beyond the 30th, I would go ahead and make the payment. Otherwise, the Lender may consider it a 30-day late and report it to the credit bureaus as such. Good luck and hope this helps! You'll also want to notify your escrow company if you do need to make a last minute payment. They will be able to make any final adjustments at closing.
Usually, loan companies give a grace period of 10 days from the time the mortgage payment is due before they consider a payment "late". And I doubt seriously that being delayed by a few days is going to impact your credit --- not unless you are habitually tardy with your payments that the lender has had to send payment reminders.
But since this loan will be paid off at close of escrow, this may already be taken into consideration in your final seller statement of proceeds.
Speak with your escrow officer who is handling the escrow. If you haven't already received your estimated seller statements, this is one of those details that is itemized on that statement. Your escrow officer can guide you on whether you still need to make that last payment, or if they can simply make the necessary entry to pay off your mortgage so you won't have to worry about making the last payment. Do note that the payment due will be prorated and paid from your seller proceeds up to the time you close escrow,
I've had some sellers ask me this...and i usually advise them to go ahead and make the mortgage payment because we never really know when the escrow will close. So if there's an overage in payment, this will be credited back to the seller.
If you're worried enough to ask this question, why not have that peace of mind, and go ahead and pay it?
Good luck, and congratulations!
The title company (or closing company) will calculate the exact amount you owe and will factor in any payments you do or do not make. You should contact them and ask them whether or not you should make your payment.
Bottom line: you will be required to pay for every day you own your home and WILL NOT pay for any days after escrow closes. If you overpay, you will get a credit either from the title company or your existing lender.
If you choose not to pay in the hopes that you can somehow pay less, you will actually have to bring additional funds to the table to close the transaction. Banks have done this too many times to let it slide, and you are certainly not the first person who has had this question. Your existing lender will need to be paid in full or they will not release the title to your home to be transferred to the new buyer.