Recommendations for Note Servicing:
Below is an outline of some general tips to simplify servicing your note.
The guideline below will also make selling your note easier if you make that decision.
1. Keep Important Documents Safe.
Please put the original note, mortgage, and lender’s policy of title insurance in a SAFE place for further keeping.
** if nothing else pleaseput the Original NOTE in a safe place.
Below are some additional items to keep on hand
1. Copy of the installment note or promissory note.
2. Copy of the settlement statement/closing statement prepared during escrow.
3. Payment records
4. Copy of the homeowners insurance policy. (Farmers, State Farm, etc)
Following these simple guidelines means you will have a good handle on the note, in terms of servicing the contract. When a note holder/seller is in the process of selling a promissory or installment note to our company we will ask for the following items. These are the most important items we need. Any additional documents we may need can be required from the escrow/title company or from the closing agent that handled the sale of the real estate such as the note holder’s attorney.
2. Always keep accurate accounting records by making a copy of the monthly payments made by the payor.
This is very important, if you deposit the monthly payments, keep the deposit records. Never, ever, cash the check or accept cash from the payor.
The note holder has a responsibility to the payor to keep good, if not great accounting records. If you decide to sell your note, you will need to show some proof of payments made. Taking the time upfront each month for accurate payment tracking, is very beneficial to for any of the following reasons: Principle balance discrepancy, IRS audit, request for payoff, or note selling process with any note purchaser.
3. Always have the current copy of the homeowner’s insurance policy on hand.
Please make sure you, the note holder, are listed as the lien holder on the policy.
If you have any questions please give us a call: 1-800-819-0615.