Paying The Lender In A Lease-option
I'm doing this for everyone's benefit, especially newbies.
But I want to hear from all of you how you go about paying the lender of the seller's home your are L/O. Have any of you ever paid without a coupon, just sent it in with account on your check? Has any company ever not taken your check? Have you ever run into any problems?
What's the best way to make sure it runs as smooth as possible?
Thanks,
The Solutions Kid
[addsig]
Usually the seller wants to make usre the lender is actually getting the payment. You can use a trustee, such as an attorney, but we have found if we make a chack payable to the XYZ lender, and reference loan number on the check and send it to the SELLER, that works well. The seller forwards it to the lender. The seller knows we are actually making payments, and we know the lender is actually getting the money, since the seller can't cash the check and run off with the money.
Most sellers I deal with want to throw the monkey off their backs (and onto mine) plus get their "equity" money.
When I take control of a property, I take control of everything. There' s no negotiating on this issue. There are several ways the seller can verify that I made the payment. I always have and I always will.
Sellers rarely worry about the payment not being made. I show them my financial statement, my credit report, and my track record.
I NEVER give a seller a check made out to the lender. Most would put the stamped enveloppe on the TV set and remit it when the repairman offered to mail it. Many relocate to some obscure rustic area of the country like say, Cincinnati. I never see or hear from them again. It's therefore imperative that all documents, and directives, and all everything else be done before their pickup truck pulls away. One thing I have never gotten use to is how cooperative they are---until you stop the pain. After that, you'd be lucky if they return your phone calls. Most don't.
I have sent many checks with the loan number written on the top margin and a 3" memo showing owner of record, address, loan number, loan amount, payment month. Checks should always be paid on time and with good funds. Don't make waves.
Use a loan servicing company. You deposit 2 months mortgage payment into an escrow account at the servicing company to ease the sellers mind.
the loan servicing company can collect your rent check, pay your mortgage and send you the difference.
It's all automatic and the seller gets peace of mind