Owner financing and loan servcing

6 Replies

Need a recommendation for a loan servicing company.  And appreciate any advice on selling to a tenant.

Over the years  plenty tenants have asked. But learned to ignore them.

But now have I one and I am sure they are serious this time.  They have the down payment. But this will be my first time with seller financing.

Price 180K with 80K down payment

8% over 20 years

Thanks

August REI report On their credit. There are many other note servicing companies that are available. The first note service company we ever used a number of years back was Evergreen note servicing. The bottom line is all note servicing companies fall short if the buyer does not make their payments correctly.

Dumb question: what is the problem or risk with accepting the payments directly? Especially if your just doing this one? 

Originally posted by @John Underwood :

Dumb question: what is the problem or risk with accepting the payments directly? Especially if your just doing this one? 

Really I think the small fee is worth it for someone else handling the payments. Figuring out how much to escrow each year for taxes & insurance. And for buyers more like a bank. Maybe Insulates me a little more from the buyers after the sale. And seems more professional.

And with all the new rental laws in my state over the past year. That is enough to keep up with.  Dont want to keep up with any escrow disclosure laws or take my time to learn a new business if any complications. 

 

Set them up on cozy for your payments make them sign an addendum when you close that they will be responsible for their own insurance and taxes . Servicing notes isn’t rocket science . As the seller you have really great terms ,nice deal on that one ! I’d be tempted to sell that note and cash out . On a price point that high you should use a mortgage loan originator to conform to Dodd frank act to qualify the buyer .