Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
I have a property that I am looking to sell by offering owner's financing.
My primary goal is to amortize the loan for 30 years with a 3 year balloon. Reporting to credit agencies will help the buyer refinance out within that time frame.
I understand that using a loan servicing company is a great for efficiency, but it seems that most of them now do not report to credit agencies. The only one that I found that did report to the credit agencies cost $60/mo with a 3% refinancing fee!
What loan servicing companies do you recommend and do you know any that still report to credit agencies? Also, what is a good interest rate to charge for owner's financing? I'm in Houston, TX.
Real Estate Broker · Bozeman, MT · Member since 2012 · 220 posts · 52 votes
13y
I haven't had a chance to close a deal with seller financing yet, but for what it's worth, here are some loan servicers I've gleaned from past posts on the subject here on BP:
I also contacted the title co. I've used for other deals, and they referred me to a local bank that does loan servicing as well as a real estate attorney that can draw up the contract. I agree with Bill Gulley on this--don't skimp on covering yourself.
Vendor · Chowchilla, CA · Member since 2016 · 27 posts · 7 votes
9y
Justin Bicket many people use a loan servicing company as third party authority who can verify payment histories to potential lenders or purchasers of their loans. Others use them to keep track of payments and reporting to the IRS. The list goes on from there. And you can use a loan servicing company for 1 to 10000 loans many don't have size restrictions.
You do not have to use one in your state you can use a loan servicers in other states. Some states require the servicer be licensed in their state but not to have the company's base of operations in that state.
There are pitfalls the more simplistic your not is the smoother the process the more "interesting" you make it the more pitfalls you'll find.