Recommendations for Note Servicing
We have outlined some tips to add simplicity to servicing your note. Please be aware this is designed for any note seller to follow a few simple set of guidelines that will make selling your note easier for the all parties involved.
Our company’s outstanding history is mainly contributed from two factors! One, is our focus on providing competitive pricing for note holders while the second stems from our honest, fast and professional service. Our long term goal has always been to buy and build a stable portfolio of real estate contracts. We are flexible, very creative, outside-the-box thinkers.
Let’s start with the close of escrow! You have just sold your real estate to the buying party. You receive your escrow package from the title company or Attorney’s office. A few days or weeks after you’ll receive your proceeds plus the ORIGINAL INSTALLMENT NOTE, the original mortgage or Deed of Trust and the original lenders policy if one was purchased then issued.
1. This is very important!
Please put the original note, mortgage and lenders Policy of title insurance in a SAFE place for further keeping.
2. Always make photos copies of checks from the Payor’s for accurate accounting records!
This is very important as well: if you deposit the money keep the deposit records. Never, ever just cash the check or accept cash from the payor. When you sell the installment note, the investment firm purchasing the note will ask to see proof the payments have been made. Accounting records is one reason, proof the payments have been made are the second reason.
3. Always have the current copy of the homeowners insurance policy on hand!
Please make sure you, the note holder, are listed as the lien holder on the policy.
4. These are three important items for correct servicing of your account for you and the payor.
If these are followed, you have the insurance at hand, you’ll know the payment schedule is accurate with correct note balance after each payment made, as well as you will have proof all payments have been made. 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. The four listed are the main items we need.
1. Copy of the installment 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)
The remainder of the documents we can get from the escrow/title company or from the note holders attorney.