How do i get a property serviced by a 3rd party

Question

I listened to the podcast with Pace Morby explaining seller financing but I am confused on the part about servicing the property to lower DTI. Can anyone explain this in further detail. Like how would I go about finding a service company. I tried googling it already. I am new and still studying to pass my RE exam but am.trying to learn as much as I can about investing.

Olivia Garcia · Answer

@Bob E. Thank you!

Bob E. · Answer

@Olivia Garcia   Feel free to DM me if you need a direct reference on our servicer's contact information.

Bob E. · Answer

@Olivia Garcia  I have both bought and sold with seller financing.  We use Allied Servicing out of Spokane Valley Washington for a lot of our loans.  FCI lender services has a little nicer we interface.  I have also heard good things about Maddison Management though I have not used them myself.

You could also reach out to Pace and ask who he uses.

Call any of them or all of them and ask if they handle this.

Olivia Garcia · Answer

@Justin H. Gotcha! Thank you! I am a beginner and im trying to make sure im understanding everything im soaking in.

Justin H. · Answer

@Olivia Garcia The servicing Pace is refering to is a company that collects a payment from the property owner and then they pay the mortgage (prinicpal and interest), insurance, taxes, and HOA fees. These are usually called PITI (without HOA fees) and are standard for most mortgages. The insurnace and taxes payments are held in an impound account and paid 1-2 per year. There are tons of mortgage servicing companies to lookup. I could recommend one if you have a bit more details on the loan type, etc. The service agreement is also great because it helps keep all the bookkeeping and notice, etc requirements straight.

As for lowering DTI, this process is regarding the original borrower's DTI when you take over their loan subject to. This will typically drop this debt by 75% thus lowering their DTI. It functions for underwriting as if the original borrower is renting the property out. This will allow the original borrower to more easily quailify for a new loan..

Hope that helps, let me know if there's more questions.

Olivia Garcia · Answer

Thank you so much!

Matt Devincenzo · Answer

There are a few well known ones that you can call. Browse through the not investing section of the site. Topics related to note investing are where the servicing aspect comes in. A few are FCI, Madison and BIFI. There are quite a few others out there in addition to those.