Find what is borrower actually pay in each months

Assignment Help Accounting Basics

Reference no: EM132724788

Mortgage Principal at origination 1/1/2019: $10,000,000

Annual Interest Rate at origination: 6%
Term of Mortgage from origination 1/1/2019: 20 years
Purchase Price: $10,000,000 on 1/1/2019
The mall owner has stopped paying principal beginning April, 2020, and anticipates being unable to pay even the interest portion beginning September, 2020 unless the CDC allows less strict mask and social distancing requirements.
The mall had a fair market value of $20 million on 1/1/2019, and expects a current appraisal to be at about $16 million.
Ignore refinancing costs.
The securitizations do not qualify for sale accounting, and the creditor retains legal title to the mortgage as well as a 10% participation in the mortgage.
Today is August 31, 2020.

Problem 1: What is the borrower actually pay in each months if the borrower unable to pay even the interest portion beginning September, 2020 unless the CDC allows less strict mask and social distancing requirements.

Reference no: EM132724788

Questions Cloud

What is the balance of treasury stock on december : What is the balance of Treasury Stock on December 31 of the current year? What accounts would be affected by the sale of the treasury stock?

Show a flexible budget for materials and labor : Show a flexible budget for materials and labor for possible production levels of 55,000 and 65,000 units of product

Find what are the budgeted earnings for next quarter : What are the budgeted earnings for next quarter? Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20

Health care organization using systems theory terminology : Describe a department or unit within a health care organization using systems theory terminology.

Find what is borrower actually pay in each months : Find What is borrower actually pay in each months if the borrower unable to pay even the interest portion beginning September, 2020 unless the CDC allows

Persuading others in professional environment : Think about the processes of forming a judgment and persuading others in your professional environment.

Cost behaviour - salary of financial controller : Cost Behaviour - Salary of financial controller of clothing manufacturer - Grain costs incurred in manufacturing Sanitarium cereals

What direct labor cost would be included in the budget : The planning budget for March was based on producing and selling 32,000 units. What direct labor cost would be included in the company's flexible budget

Observation could affect your intercultural communication : Reflect on how much this experience stretched your comfort zone and how this observation could affect your intercultural communication.

User Account

All Pages