This question might seem rather simple but I haven’t been faced with this scenario before and I want to make sure I do it correctly.
My client emailed me the other day after 3 years of living in their house and they wanted me to let them know what the payout figure on the loan is.
Firstly, the loan they are referring to is my contract loan with them right? (ie: the purchase price I onsold the house to them at)
Secondly, it’s been three years of payments that have passed thru my bank account. Each payment contains a portion of money that represents my profit each week – correct? So does that mean I simply take their purchase price listed in the contract minus the minimum instalment payments I have been paying against the loan I have with my lending institution? or is it the listed purchase price in the contract minus their total weekly payments times three years, meaning I forgo any profit during that time?
Need some clarification on this and apologies if my understanding of this is a little up the creek.
Your assistance is greatly appreciated and I look forward to a reply.
Cheers,
Richard
Sounds like you do not understand what you have done.
Have you sold a house on an installment contract? If so, they payout figure is the amount remaining on their loan to you, with any exit fees etc (if in your contract) added on top.
Have you been issuing them statements? If so you should know how to do it. If not, you should contact the person who set this up for you, or maybe your accountant.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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