Should I make last mortgage payments before closing on the 11th?

[Anonymous]

I am closing on Friday May 11th mid-day. I have not make payments for my mortgage and HELOC for May. I have a grace period until the 15th; after that, I would need to pay a late fee. (Only loans 30 days late would affect credit report). My settlement company has told me that that loans would be paid off on Monday May 14. This means that I don't need to make payments this month. I am inclined not to make them and have the settlement company calculate the payoffs with the current balance.

Is there any reason why I should make the final payments? Even in the highly unlikely scenario that closing is delayed, I can make urgent payments on the 11th afternoon.

[Anonymous]

^^ Of course, I am the seller, and the payments referred in my OP are payments on the house being sold and settled on the 11th.

[Anonymous]

You need to talk with your title company about this. If they prepare all of the paperwork assuming you are going to pay, but you don't, the numbers won't add up.

[Anonymous]

Anonymous wrote:You need to talk with your title company about this. If they prepare all of the paperwork assuming you are going to pay, but you don't, the numbers won't add up.

Thanks. Yes, I am talking to them. They know I am deciding now whether or not to make the final payment, and that I will inform them one way or the other, so that they can have the proper payoff amount. They seem to be OK with me not making the payment, since the payoff will take place on the 14th.

[Anonymous]

If your new lender is fine with you not making it, just tell them you’re not so they get the math right.

Our settlement was in the 15th and our broker actually told us not to make the payment due then because he knew we were in the position of having to bring money to the table and that $2k wasn’t insignificant to us.

[Anonymous]

Anonymous wrote:You need to talk with your title company about this. If they prepare all of the paperwork assuming you are going to pay, but you don't, the numbers won't add up.

The title company will request a payoff statement from the mortgage company. I believe the title company will pad the amount either way for safety because it will dependent on the date the funds actually transfer. In reality, I don't think it will matter that much and I would just not make the payment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You need to talk with your title company about this. If they prepare all of the paperwork assuming you are going to pay, but you don't, the numbers won't add up.

Thanks. Yes, I am talking to them. They know I am deciding now whether or not to make the final payment, and that I will inform them one way or the other, so that they can have the proper payoff amount. They seem to be OK with me not making the payment, since the payoff will take place on the 14th.

The payments due on May 1 are for April 1 through April 30. The settlement company can collect this amount plus about 20 days of interest for May. Interest is due until the loans are paid off. when the loans are paid off, you will receive the remainder if the interest. I would have the settlement company make the May payment because the onus is on them to get it to your lenders before the end if your grace period.