My father (now deceased) made private loans to individuals. For one loan, which he sold to a third-party, his records show the following amounts: $71,000 loan balance 600 unpaid late fees 7,000 unpaid interest 13,000 cure default 800 processing fee
What is the amount identified as "cure default"?
I assume that is the amount that he got from the third-party for the loan. Furthermore, I assume that the "processing fee" was charged by the third-party. Is it likely that the "cure default" amount is net the processing fee; or would the "cure default" normally amount include the processing fee? Since "processing fee" is listed separately, I assume the "cure default" amount is net that fee. But I don't know what is customary for recordkeeping.
Note: My father was an attorney and a CPA. He probably would have followed generally accepted accounting practices in his recordkeeping.