Note Loan Servicing Recommendations

[Michelle Fenn]

I am in Cleveland area and have turned long term rentals into notes. I was able to sell one of my notes last year when I needed to raise capital for 90% in a week.   What I learned is that I was lucky, not smart and the cost of a loan servicing company is a good investment.  

[Logan Hassinger]

@Michelle Fenn

Looks like Jamie and Chris have got you covered for the most part. I would add to what they have said by throwing out a few servicers that many of note investors use. 

• FCI (I currently use)
• Madison Managment (I currently use)
• Allied Servicing
• Note Servicing Company
• Evergreen Note Servicing

Check out their sites and give them a call to learn about their fees and online portal for lenders etc. 

I’ve been satisfied with both FCI and Madison. Just remember, they are there significantly reduce the risk that comes along with staying compliant with Dodd Frank (monthly statement issuance, annual interest paid, and escrow services to name the biggest). I’ve found that many note investors have unrealistic expectations of a servicer in terms of borrower outreach and loss mitigation. While they help, it’s up to the investor to provide oversight or outright loss mit on your own (or through the help of other professionals).