Payment Process?
How does the payment process go when doing a Sub-2 deal? I would think it would go from my buyer to me, then to the bank, because I want to make sure the payments are being made on time. Correct me(newbie) if I' m wrong.
Murphy
Why would you want to sell Sub-To? Generally, this is a method to acquire property from the motivated folk...and the previous owner steps out of the picture entirely. That is, by your scenario, the buyer makes payments directly to the lender.
If your seller is interested and has big concerns, most lenders have an 800 number that can be called...just punch in the account number and it'll tell them if the account is current. After the first couple times they'll be sufficiently reassured and probably won't call again...although, if they're that paranoid and untrusting of you, maybe you shouldn't do the deal to begin with.
Don't sell sub-to...find another exit strategy.
Murphy,
Glad to meet you.
I believe you said you were doing a Subject To deal not selling using Subject To. In this case this link will help you, pay attention to the Loan Servicing Part.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=146
John $Cash$ Locke
Hi JohnLocke,
What are the general fees that a Loan Servicing Company charges?
Any recommendations?
Thank you.
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Quote:
On 2004-06-27 20:28, JohnLocke wrote:
Murphy,
Glad to meet you.
I believe you said you were doing a Subject To deal not selling using Subject To. In this case this link will help you, pay attention to the Loan Servicing Part.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=146
John $Cash$ Locke
[ Edited by RE_DreamMaker on Date 06/27/2004 ]
RE_DreamMaker,
Normally there is a $25.00 set up fee and $5 -$7 per check per month well worth the money spent for the protection it offers to everyone.
Try North American
http://www.sellerloans.com/
John $Cash$ Locke
[ Edited by JohnLocke on Date 06/27/2004 ]
Sorry if my post was misleading. I wasn' t talking about selling Sub2. I was talking about simply selling the property I acquired Sub2 from the original seller.......
Thanks to everyone who posted...You guys cleared some things up
Murphy[ Edited by Murphyj2000 on Date 06/27/2004 ]
Sorry Murphy...I couldn't be sure since you said "my buyer" it sounded like you were on the selling end. Anyway...glad your question was answered.
John...I like the LSC approach. Definitely gonna factor that into my gameplan
Thanks sooo much JohnLocke for the information.
Greatly appreciated!
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Quote:
On 2004-06-27 21:21, JohnLocke wrote:
RE_DreamMaker,
Normally there is a $25.00 set up fee and $5 -$7 per check per month well worth the money spent for the protection it offers to everyone.
Try North American
http://www.sellerloans.com/
John $Cash$ Locke
<font size=-1>[ Edited by JohnLocke on Date 06/27/2004 ]</font>
Won't the "Authorization From Lender" form they require trip the DOS red flag to the original lender?
I am sure lots of people here use the loan servicing company on the www.sellerloans.com site, but this has got me curious.
Charles
cvance:
Not sure why you'd need an authorization form...
I plan on doing one of the following:
- using a change of address form, signed by the seller to the mtg company that changes the address from his street/PO box to the LSC's mailing address.
- If they have one, I'll have the LSC send one of the seller's loan coupons in with the payment, using the change of address form on the back.
- Have the LSC take care of this however they see fit (using the method with the most experience/best track record)
Most payments go to a faceless processing center, which is good and bad: good in that they're handling hundreds/thousands of payments every month and aren't comparing addresses (as long as the payment is being made); it can be bad for the same reason: they may miss the change of address request, so you should stay on top of the LSC to make sure they start getting notices, etc. from the lender.
Andy
In looking at www.sellerloans.com, part of their setup paperwork is what they call a "Lender Authorization" form that they require to be signed by the lender. I am not sure why they need it, but it is in their setup instructions.
Charlie