Note Servicing Companies

39 Replies

Lately I find myself doing clerical duties making sure that I'm escrowing enough for taxes and insurance when I should be buying and selling notes and properties. I don't see much discussion on here about servicing of notes. Are all of you guys handling that yourselves or do you have a note servicer? To me the cost of note servicing seems cheap compared to missing out on even one good deal per year.

I use Complete Cashflow Services in Washington state. Melissa Bolling (principal) is a member here.

I just bought a note where the escrow company was already in place as the servicing company. Mills Escrow in El Paso, TX. Jennifer Harris is the contact there.

I use noteworld.com. About $15/month. I have not used anyone else so I do not know if they are good or bad in comparison to other companies.

They seem to ask for the right information to set up the note in their system. Year end reporting seems adequate. Best of all, online abilities is good and I can see everything on the note. They send late notices when they do not receive payment but there is a charge for that.

Gee, I was thinking of posting a similar thread!

IMO, seller financing should never be done without a servicer. It serves many benefits for both buyers and sellers and if a law had been passed long ago that all such private transactions were required to be serviced through a thrid party, we would not have as much regulation addressing the issues we have today, specifically, the individual investors under the SAFE Act!

Part of my business was providing loan servicing for seller financed transactions and this type of intervention between a borrower and seller, I would have to say, was more than welcomed by underlying mortgage holders (banks).

While secondary market loan servicers do not really intervine when a problem poped up, we did, to the extent of paying off any loan or obligation or restructuring it. I doubt the companies you mentioned above (both good) probably would not go to that extent, but they could.

I have had borrowers or lenders (buyers and sellers) die, get divorced, go bankrupt, default under every loan provision, become incapacitated and even go to prison! Banks and institutional servicers are not usually willing to get involved and assist customers and stick to the servicing agreement to the letter to avoid liabilities, and that makes good business sence, but we adminstered deals that were underwritten and failure was not an option!

A good loan servicing agreement should address the customary risks, paying obligations such as taxes and insurance, but also have an understanding of just what the servicer will do in the event when non-conventional issues arise.

An example would be when a borrower has repairs made to the property (or does them) and they have little equity. Liens can arise that put the note holder out of their comfort zone or LTV on the deal. Such aspects are usually left out of seller financed transactions since they are not contained in conventional deals, but seller financed deals are not conventional!
This alone is a complex issue as the buyer needs to be able to make repairs and improvements, seeing that they are professionally done is another matter. OK, that's another book! LOL

Complete Cashflow Services has my vote! Melissa has been great to work with and she is a member her as Loc mentioned. I used to service our notes personally but, with the SAFE act and the fact that servicing is a BIG pain in the butt anyhow, I am glad to shift this work out to others so that I can go out and do things that actually make me money!

loc recommended complete cashflow services to me a while back and i've been pretty happy..melissa keeps good commuication and is quick to respond

Hey All-

I know I am digging up an old thread- just wondering if anyone has any updates.
I've Been looking for a company that I can trust and rely on as a Broker in case I need to use the service myself or refer a client.

I'd appreciate the updates!
Thanks!

I came to this thread because I am unhappy with my note servicer. 

I am using Peak Corporate Network. 

I like all that they offer which is

Standard Servicing $35 includes:

Customer Service

Payment Processing

Monthly Statements

Credit Reporting

Escrow Impounds

Investor Reporting

Arm Loan Adjustments

Late Notices

Maturity Letters

Default Servicing (Non Performing) $85 includes all the above as well as:

Loss Mitigation Repayment Plans

Loan Modifications

Short Sale Processing

Deed in Lieu

Collection Calls

Breach Letters

Foreclosure Prep & Referral

Bankruptcy Referral & Monitoring

Foreclosure Sale Bids

REO-Eviction Processing

Im not real excited about their pricing and I wonder if they're are other companies who do the same job for a lower price. However, the main reason I am unhappy with them is because the customer service is terrible. Its takes days to get a email returned (if it gets returned at all) I call and leave voicemails and dont get any returned calls, my borrowers have reported to me that they cannot ever get straight answers or solutions, It takes 30 to 45 days to receive my money. Its been over 6 weeks trying to get a expired insurance policy paid without any success. All the original people who I started out with have been moved to a different position or moved on to other opportunities. 

Im giving them a very low score and can say I do not recommend them.

Peak loan servicing is supposidly going to exit the servicing market to just going to focus on being a RMLO, as they are a diverse company. Though I heard there might be something for us. We have 20 loans with them at this time, most of them parked, 2nd liens.

And I really don't like that Peak sends funds 1x a month. FCI supposidly has $15 a month and ACH transfer to checking, so check them out.

I have 2 note service companies I use. One is Madison and they charge $20 a month with Internet access and the other is Allied Servicing which charges $18.50 a month with no internet servicing. I may switch Allied to Madison if they don't get their Internet access working like they promised. I haven't used any of the other servicing companies.

We use Allied Servicing Corp also run By Melissa Bowling.  They do a great job, and the $18.50 a month includes handling Escrows.  Deposits are made as they come in and they don't jack up the price if the loan becomes non performing.

Hello to everyone!

Hey I saw talk in here that Peak is getting out of the servicing side?

I'm very interested and would appreciate any info.

Also, does anyone have a contact name there...the higher up the better.

Any and all info appreciated...either post here or PM me.

Thanks! 

Hi. I am new to the note business and was wondering if I could pick someone's brain.  We are just starting to get into talks with local banks about buying their paper.  We did buy one and were able to get a deed in lieu signed.  Now we are in talks about buying a package of notes.  What are good serving companies to use?  Or should we setup our own?  Has anyone found the note business to be a good cash flow business?  Thank you in advance

I am currently using Evergreen. They don't email if someone doesn't pay; only when they DO pay. I thought this was odd since a note holder doesn't wan't to know when he IS paid but rather when the payee does NOT pay. The said they would not accomidate. This last month they inadvertently deducted the payment from me instead of the payee's account. I've had some helpful reps and some reps that are level than polite. The website is poorly constructed, not appealing and not easy to navigate. 

Thanks for all your information. I have been collecting my own payments, but it is time consuming. and following all this around to make sure the ins. and taxes are paid.  Is there anyone out there currently using State Farm collection