I have several properties that are debt free with tenants that are interested in buying. I am looking to write a land contract and have it handled and processed by a loan servicing firm. Has anyone done this and what has been your experience? What are the costs? What do they provide? Any lessons learned you would suggest? Thank you in advance for your thoughts.
I have a few seller carries and seller financed buys (7) that are handled by a local bank. Without this trusted little bank's 'contract servicing dept' I would probably have 0 seller- financed buys.
The costs went up recently. $150 set-up and $10 per month. As a buyer, I pay no problem. You could pass these along to your buyer or split it. The fees used to be $75 set-up (they also hold original docs) and $7 a month.
There are some online note servicers. Would be okay for you as a seller, but when I'm convincing a seller to carry for me, they like knowing who it is. Good luck!
Is this a typical business service for a bank to offer? I've never heard of that, but I've never been looking for it either.
How did you find out about their "Contract servicing dept"?
no, there are loan servicing companies. if you were to purchase a 'note' from another investors, oftentimes it can be processed by a 3rd parties. I am familiar with FCI but they are a forum to buy, sell and have notes serviced. I would imagine I could go through them but I wanted to understand what others have done prior to moving forward.