Do you guys have a suggestion for a good loan servicing company that calculates their provision on a percentage rate and not a fixed rate per transaction? I am closing on 6 seller financed properties this month and the servicing company that I usually use charges 20 bucks per transaction. Since this is a package deal with one mortgagee I would prefer not to burn $43k over the life of the mortgage (30 years) just for loan servicing! There has to be a more cost effective solution. Also, on this transaction I can't work without a professional servicing company like I have done before, due to the dangerous wording in her promissory note and mortgage agreement. Especially the age of the mortgagee (76) and the potential loopholes that the wording in her note creates in regards to her heirs, make a it a must for me to have a servicer that facilitates the payment. I'm also sure the old lady won't be able to provide a 1098 lol.
Do any of you guys know a good vendor for this? Thanks a lot!
$20/month is the cheapest you will find. Unfortunately mortgage servicing is so regulated I have no idea how they make $ at that price since they have to have compliance audits etc. only other option is to do it yourself.
Thanks @Chris Seveney , maybe I'll have to combine all 6 properties on one promissory note to achieve one mortgage payment for the servicing company. I'll have to outweigh the risk when it comes to that strategy. $120 Dollars per month would certainly s*** too...
@Michael B. yes you could do a blanket loan that wraps them all. The other option is have the borrower pay the servicing fees. I have done that in the past.