ALLIED LOAN SERVICING RECOMMENDATIONS

Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes

I am doing seller financing on a property I own and my attorney recommended Allied Servicing Corporation out of Spokane Valley, WA. Is anyone familiar with their services or have used their loan servicing before. In watching the video they seem to small?

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Tracy Z. Rewey

Investor · Orlando, FL · Member since 2013 · 837 posts · 316 votes

@Marcus Maloney Allied services some of the notes on the listing platform (along with FCI, NAA, SN Servicing, Madison, August REI, and others). I've also used Allied personally for servicing notes with partial sales. They are smaller but that goes into the plus column in my book. You can actually call someone and get assistance. It also makes them great for specialty deals like servicing partials, wraps, or deals with multiple investors. I worked with the owners Melissa Bolling and Sheila White over 20+ years ago at an insurance company that bought notes so they have been in the servicing biz a long time. As @Bob E. mentioned they now have a web portal.

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Pari Thiagasundaram
Lender · Fremont, CA · Member since 2014 · 292 posts · 102 votes
8y
I am using Allied for some of my notes. They don't have a web portal, so if you have to go look for a particular expense, you would have to call them.
Madison Management on the other hand is also a servicing company that you can board your notes with. Talk to Shante Duffy over there.
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Marcus Maloney
OP
Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes
8y
@Pari Thiagasundaram what have your overall experience been with Alliied: good, fair, or indifferent? Are they pretty responsive since there is no web portal? Are the servicing fees competitive? Finally, do you have escrow accounts with your notes for taxes and insurance?
Thanks in advance
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Bob Malecki
Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
8y
Make sure they are licensed in the state where your loan is located.
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Marcus Maloney
OP
Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes
8y
@Bob Malecki thanks I did confirm that, my attorney referred them because they service a loan for another client of his. I am comparing them to FCI at the moment
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Bob Malecki
Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
8y
Hi @Marcus Maloney let us know your comparison/findings. I've been using FCI now for the past 5 years and find them to be very reasonably priced with great service and communications. Just heard a podcast interview with Dave Van Horn and he said PPR has been using FCI as well.
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Patrick Desjardins
Real Estate Investor · Amherst, VA · Member since 2015 · 386 posts · 400 votes
8y
Yeah I would recommend FCI as well for performing notes. Their portal is great.
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Bob E.
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Marcus Maloney Nice to see another resident of the QC on BP. I use allied and have been happy with them, they handle escrows with no problem and their servicing fees are very competitive, especially for NP loans. While they do not have a portal they are very responsive on the phone. My experience has been that the companies (NAA) that do have a portal tend to try and push everything to the portal, making it hard to talk to a person.
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Mark Elmore
Flipper/Rehabber · Carlsbad, CA · Member since 2015 · 11 posts · 8 votes
7y
Hi @Marcus Maloney , did you ever get servicing started with Allied. What are your thoughts on them now?
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Bob E.
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
7y
As an FYI they are adding a web portal now. I have found their fees to be the most reasonable and they do handle escrow. As an FYI you can escrow HOA dues if you list it in your loan and they can handle that too.
I can also say that i have NOT had a good experience with NAA.
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
7y
I have heard some good things with Allied thought I do not use them. I use madison and they have been great. If it is a contract for deed also check out evergreen. they service performing CFD's and are very reasonably priced as well.
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Mark Elmore
Flipper/Rehabber · Carlsbad, CA · Member since 2015 · 11 posts · 8 votes
7y
Thanks Bob and Chris
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Marcus Maloney
OP
Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes
7y
@Mark Elmore I am using FCI and they are working well for me
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Tracy Z. Rewey
Investor · Orlando, FL · Member since 2013 · 837 posts · 316 votes
7y
@Marcus Maloney Allied services some of the notes on the listing platform (along with FCI, NAA, SN Servicing, Madison, August REI, and others). I've also used Allied personally for servicing notes with partial sales. They are smaller but that goes into the plus column in my book. You can actually call someone and get assistance. It also makes them great for specialty deals like servicing partials, wraps, or deals with multiple investors. I worked with the owners Melissa Bolling and Sheila White over 20+ years ago at an insurance company that bought notes so they have been in the servicing biz a long time. As @Bob E. mentioned they now have a web portal.
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Johana Salazar
Developer · Memphis, TN · Member since 2019 · 3 posts · 0 votes
7y
Hey Guys so I’m reading the comments and it sounds like Madison is a great bigger company they are charging around 50 bucks for the service while Allied is charging 18.50 a month for the services. I’m starting to get into owner financing and I want to make sure a have someone that will be servicing the notes. Who will you guys suggest to go with? I’m currently working with a small title company and I enjoy been able to call and get answers quickly vs going trough the rabbit hole so I’m leaning towards allied for now but I also want to have a good servicing company that will take care of the notes with out any issues... Toughs??
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
7y
@Johana Salazar
The difference between Madison and allied on price is the escrow payment. Madison charges to collect escrow and allied does not.
Madison is larger outfit and if you have non performing assets and not interested in working them out then I suggest you go with them- if they are cookie cutter performing assets then possibly go with allied.
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Bob Denkers
Member since 2019 · 16 posts · 1 vote
6y
Can I pass the cost of the servicing on to the buyer? Also how soon do I receive the payments after the buyer pay the servicing company
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Dan DeppenBusiness Member
Erie, CO · Member since 2017 · 274 posts · 267 votes
6y
Originally posted by @Bob Denkers:
Can I pass the cost of the servicing on to the buyer? Also how soon do I receive the payments after the buyer pay the servicing company

I've never passed the servicing cost on to the borrower, but I believe its possible if its written into the note.
How fast you receive payments depends on the servicer. Usually there is a lag of a couple of weeks, at least there is with Allied and Madison. They both make payments on a weekly basis and are pretty fast in my opinion. There is another servicer out there that I won't name that makes payments at then end of the following month after the payment comes in, so they often end up holding your money for up to 2 months. Ask your particular servicer what their policies are when you create an account with them.
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Tracy Z. Rewey
Investor · Orlando, FL · Member since 2013 · 837 posts · 316 votes
6y
Originally posted by @Bob Denkers:
Can I pass the cost of the servicing on to the buyer? Also how soon do I receive the payments after the buyer pay the servicing company

Hello Bob,

If you are setting up a note fresh you can write into your docs that the buyer pays the servicing fee. They just send in the extra each month with their PITI. Some servicers like for that to be in the servicing agreement as well. This is something we have done in the past and it really helps improve your returns on the notes with smaller payments/balances. If the buyer doesn't like it, we have offered to split 50/50. If you are buying existing notes then you are subject to the arrangement already in place (which usually means you as the note holder pays the fee). If you later modify for some reason (or convert from a CFD to a Note/Mtge or Note/DT) there can also be an opportunity to pass that cost on to the buyer.

As for payment remittance, that timing depends on the servicing company as @Dan Deppen mentioned.
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Morgan Rogers
Member since 2020 · 1 post · 0 votes
6y
Stay away from Allied. I have used Allied to service mortgage loans for my mortgage investment company. Recently, my borrower paid off a loan, but Allied refused to forward the payoff funds to my company, insisting only they could record the satisfaction and then insisting I forward all my original loan documents and sign the satisfaction before receiving the funds. Allied refused to return my phone calls, letters, or emails. I was forced to hire a lawyer and threaten a lawsuit. Only then where my funds transferred. However, Allied still has my original documents despite my continued requests to return them. Also, I agree with the comment above, they have no website to check the status of the loans they are servicing for you. Not worth the risk to use them, find someone else.
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
6y
@Morgan Rogers
This is not an opinion on allied but Waiting on funds until you sign the release Is very common (not only in these types of transactions but any contract with typically also involves lien waivers)
Also it is common for the borrower to be sent back the original note as well since it’s been satisfied. These are done to protect the borrower (and I would guess in many states a legal requirement).
They are also covering their you know what- if they send you the money and you turn around and still sell the note or don’t sign the satisfaction they have repercussions against them as well.
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Marco Bario
Specialist · Frederick, MD · Member since 2017 · 474 posts · 454 votes
6y
@Morgan Rogers - Offering another view - Allied has come up strong for me since beginning to send files their way about a year ago. A buyer sent a payoff on a file this past Thursday. I have no reason to expect we won't get the paperwork resolved quickly and funds forwarded my way.
There's another servicer with whom I have an active billing dispute at the moment and likely will pull the rest of my files from. Finding the servicer for you is a little like dating...
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Liz Brumer-Smith
Specialist · St. Petersburg, FL · Member since 2013 · 114 posts · 49 votes
6y
I've used all three services mentioned above and more. FCI and Madison are the largest for the smaller investor who is buying one or two notes at a time. Allied is really knowledgable and has since launched an online portal. They can handle partials well just as FCI can. All three have pros and cons. No one servicing company is perfect! I find it's best to keep the loan you're purchasing with the original servicer. This minimizes confusion in the transfer (for the borrower and reduces the chance of missed payments during the transfer). If you're originating the loan yourself try out each servicer and adjust in the future if your not happy.
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Pierre E.Pro Member
Washington, DC · Member since 2016 · 123 posts · 42 votes
4y
Quote from @Liz Brumer-Smith:

I've used all three services mentioned above and more. FCI and Madison are the largest for the smaller investor who is buying one or two notes at a time. Allied is really knowledgable and has since launched an online portal. They can handle partials well just as FCI can. All three have pros and cons. No one servicing company is perfect! I find it's best to keep the loan you're purchasing with the original servicer. This minimizes confusion in the transfer (for the borrower and reduces the chance of missed payments during the transfer). If you're originating the loan yourself try out each servicer and adjust in the future if your not happy.

I have seen multiple people mention allied, googled it and got a bunch of random companies. Do you have the domain part of the URL to make sure I am looking at the right company (first timer here, just being careful!)
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4y
@Pierre E.
Allservicing.com is their website
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Pierre E.Pro Member
Washington, DC · Member since 2016 · 123 posts · 42 votes
4y
Quote from @Chris Seveney:

@Pierre E.
Allservicing.com is their website

Thank you much appreciated!

So far I have found these
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