How to record a mortgage payoff from a sale that is not a re-finance?

I have an existing Mortgage loan in Quicken, we have just sold the property, and want to find the best way to show the payoff. How would i do that?

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited June 17
    ASSUMING that you had the house as an asset in your Quicken file and creating an example where your cost of the house was $200K, the loan balance was $100K, and you sold the house for $250K and incurred no cost for the sale, then the generalized, non-detail entry for the sale of the house and elimination of the mortgage would be along the lines of:
    Debit (decrease) Mortgage Loan Account                        $100K  (zero out mortgage Account)
    Debit (increase) Checking Account                                    $150K  (deposit of net check out of escrow)
    Credit (decrease) Home Account                                       $200K  (zero out house Account)
    Credit (increase) Gain on Sale of House Category          $ 50K  (recognize gain)
    On the other hand if you simply want to zero out the mortgage loan liability you could simply go to the loan's register in Quicken, enter an amount in the "Decrease" column that's the same as the current balance of the loan, and in the "Category" box enter the name of the mortgage loan Account itself.   So for the example entry above you'd enter $100K in the Decrease column and "[Mortgage Loan]" in the Category box.
  • Mark1104
    Mark1104 Member ✭✭✭✭
    depending on how detailed you maintain Quicken, you may want to take the Closing statement and enter each entry from the Closing Statement into Quicken so that the cash received is correctly accounted for.
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