Note Servicing Companies

23 Replies

FCI has competitive rates and the best website and user portal for users at our level. Great customer support and proactive responses to some of my bankruptcy and foreclosure assets. 

If you have not bought a note before I would not recommend Maryland - especially if it’s baltimore. 

@Wesley I. Yes, FCI does have a network of attorneys that they can refer you to. We use FCI as well and they are about the best that's available. They're not good at loss mit but I haven't found any servicer that is.

Keep in mind that FCI will not accept the transfer of a CA NPN with a FC in progress where the property is owner occupied. We made the mistake of going with Del Toro Servicing and they were absolutely terrible. We should have gone with Madison instead but had to find a replacement for FCI right away.

@Wesley I. - Very difficult state for notes. Courts are borrower friendly. The foreclosure process is lengthy because the borrower can get mediation and once it does foreclose, anticipate it taking 3-4 months for the courts to ratify. Baltimore and PG County (where landover is) I typically stay away from if I can (and I work in MD), as it is a lot of headaches. You just have to make sure you bid accordingly. Most people who pay 40%+ of UPB on a NPN in MD will wish they never did.

@Wesley I. I have invested with PPR Note Co and Broadmark Capital. They both offer 1st lien note-lending funds and PPR also offers individual note opportunities. Happy hunting 

FCI has the best portal and investor tools available and I have found the service to be responsive as well.  They have remained to be available for starting investors with small number of notes.   Land Home Financial,  unless you were grandfathered in or have a larger portfolio to manage will charge a large monthly fee which removes them from consideration for the logical investor

I also recommend FCI, especially for performing loans.

But be aware that all servicing companies suck. A loan defaulted and the borrower texted me. We agreed she would pay $350 per month. It's been 3 months and they have finally gotten the paperwork done for the forbearance agreement. They will keep calling the wrong number and you have to hound them. AND they're still the best. So this is really a case of scraping the bottom and trying to find the less worst of the bunch.

I tried Land Home before. Definitely do NOT recommend them. They are completely incompetent. I've talked about them before but it's the same company that on the same file: autodialed the same wrong number for a month (even if the borrower had called them from another valid number), didn't send the demand letter for a month (despite telling me they were going to send it) and other problems I don't remember the details of. All in all it took twice as long to foreclose with them as it has with other companies due to their constant screw ups. Others may have a different experience with them but after this fiasco I immediately transferred to another servicer.

Sorry to see your troubles @Patrick Desjardins I compose all of our forbearance/modification to maintain independence from relying on my servicer to generate them. I do send them the final draft to issue to our borrower so they are in the loop and the borrower is dealing with the servicer, not myself/partners. I also work directly with our foreclosure attorneys and cc: FCI staff as needed so they are in the loop. FCI adds all correspondence to the account servicing notes, so I have a nice consolidated history on their portal. 

FCI has been very good with contacting borrowers for loss mitigation from our directives as well. Some investors rely on their servicer to do these things, but I've found that proactive management of the process with our servicer has the best and fastest outcomes. 

True I do not use any of my servicers to perform loss mitigation on my portfolio for exactly the reasons pointed out by others on this thread. We use The Singer Law Group. 

Originally posted by @Chris Seveney :

If you have not bought a note before I would not recommend Maryland - especially if it’s baltimore. 

What states would you recommend for starting out? Are there specific non judicial states suited to new investors?


Thanks I will research those markets. Were you going off of just foreclosure time or are there other regulations which make it amenable?

Be aware if you have to foreclose in Michigan, they have a redemption period of six months if the borrower owes more than two-thirds of the original loan amount, or. 30 days (or until the 15-day notice that the lender considers the premises abandoned expires, whichever is later) if the home is abandoned. 

Originally posted by @Steve Burt :

Thanks I will research those markets. Were you going off of just foreclosure time or are there other regulations which make it amenable?

licensing not considered.. but fast and easy foreclosures I have done are.

1. TX

2. MS

3. GA

4. MO

5. nv  az  ca or WA  are all about equal from what i know with the exception of AZ and NV i have foreclosed in each of those states.. 


@Jay Hinrichs

MS and MO I second

In regards to authors comment: I was going off ease of finding assets, pricing and legal arena

For example jay mentions Texas which is great but you will pay through the nose for a note in TX. Some other states noted FC timeline and costs are not much different and you will not pay the Texas premium,

Back to the original question on servicing companies - whoever you use make sure you also audit them. For example make sure you send them any advances you paid or recoverable costs such as legal and that they actually add it to the loan.