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Deborah Lopez's Advice

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Deborah Lopez wrote:

When will rent back rent start to count, as of COE or after COE?

Answer
This is an old post but this is a question that pops up all the time - most recently on a closing I had last week.   The answer is that PITI is paid on a ddaily basis for each 24 hour period that the seller is in occupancy.   You ccan't count a 24 hour period until after it is over so the first day starts the day you close but finished the day after that.   That is day 1.   It is the same thing with your mortgage because when you make your mortgage payment you are actually paying for all the interest and principal that accrued the month prior to the payment being due.    And the banks collect from the date they fund - which is normally the day before you actually own the house.    So your agent is correct.
June 17 2012
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