Adjusting A Contract For Early And Late Payments?
I’ve bought a few properties and I’m selling my first one next week. But I'm worried about paperwork details. I make out the amortization schedules for the Contracts for Deed into which I enter, but what happens when I pay off—or receive—payments early (or late), or pay or receive extra money that is to be applied to reducing the principal? Do I need to make out a new amortization schedule every time this happens, or is there some computer program that will take care of all of this?
I haven't found a ‘loan servicing company’ yet, and I’d like to learn how all the paperwork works anyway before farming it out. Thanks for any replies.
I have an Excel spreadsheet I made (tweaked a template that came with Excel for my specific needs), with a column for add'l principle applied. As far as the interest thing, I'm sure Excel could do it, but if you're talking about a day early or a day late it's probably not worth the time...just assume the payment was made on time.
sorry for spelling principal wrong...