I am looking for a company who will manage all aspects of the loan I made which I carry the note. I want to be hands off on the collection, tracking, validating insurance and taxes are paid, etc. I am located in Edmond, OK. Are there any local loan servicing companies or any national companies that handle this service? Please can anyone recommend one with reasonable fees? I have read that Seth uses an outside loan servicer for his seller finance deals but I am unfamiliar with any in my area.
Hey @jerrym3 - you could just do a google search for something like:
…and see what comes up.
A quick phone call to any of these outfits could probably get a lot of your questions answered, in terms of where they can work, what they do and how much the cost.
If you do a search for “note servicing company” on BiggerPockets.com, there are several threads on there discussing both bigger servicing companies and smaller ones…FCI, Madison, Note Servicing Center, Allied, etc
I have heard good things about madison management.
I have been pleased with:
SecureNet Loan Services, LLC
P.O. Box 15826
San Antonio, TX 78212
Phone: 210-236-7454
www.securenetloanservices.com
April M. Hernandez
april[at]securenetloanservices.com
They do all the work including collecting the fuds, sending notices, tax documents, etc.
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I had a disappointing call with a rep from Del Torro Loan Servicing today. I called and left a detailed message for a rep outlining that I bought and sold vacant land, sometimes on terms - and that I was pontentially doing my first terms sale out of Texas and out my current loan servicing company didn’t service loans outside TX.
When the rep called me back I missed the call. She left a voice mail saying “We don’t do seller carryback loans at this point.” She did refer me to Note Servicing Center or Evergreen Note Servicing Center. I called her back and pressed her a bit - letting her know that I knew of specific individuals who are in exactly the business I am and who have (have had) notes serviced with them. I told her the feedback she gave me was inconsistent with her company’s practice, the information on the company website and the review on well known real estate expert @retipsterseth blog about the company. Let me be clear - she was very professional and nice. She offered to have someone form the company’s management call me back. I got a call back after 7 pm tonight and I was tied up with family and friends and not bale to take the call. I’ll call them back tomorrow and let the forum know what I find out.
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@karljames I actually encountered a similar thing several years ago (I think it might have been around 2014 or 2015) when I had called them about setting up a new seller-financed deal in Michigan, and I was also told “no” because they were only licensed to service loans in a few states in the SW US.
I was surprised by it, because they had serviced several of these for me in Michigan prior to that. I wasn’t sure if they changed something, or if they somehow weren’t paying attention to the locations of the original ones I did with them (I’m guessing it’s probably the former).
Needless to say, I stopped mentioning them around that time, because they were no longer the one-stop shop for servicing loans around the country (and maybe they never were, but for whatever reason, they were okay doing several of my deals until they decided not to anymore).
I wouldn’t get too hung up on it though. Del Toro isn’t the linch pin in making a seller-financed deal work, they were just a very helpful resource at a time when I needed them.
I haven’t worked with Evergreen or the Note Servicing Center yet, but I know they’ve been around for a long time, and if Del Toro specifically pointed them out as a viable alternative, that’s probably worth something.
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@karljames Hello Karl and thank you for being here you always add valuable content based on real life and valuable experience.
@retipsterseth I spoke today with Enrique, their VP of operations. He explained that they have quit doing seller carry backs for land and especially single loan clients because in 2019 and 2020 they had hundreds (about 200 and 500 respectively) people reach out to them after attending seminars by a particular land course person that recommended them - they acknowledged it wasn’t you but because he was a client they wouldn’t say who. He said the vast majority of the folks had no clue about even the basics of seller financing/ notes and their staff was spending in ordinate amount of time explaining just the basics to all these people - way more time than the single loan client services were worth as so many of them never went to completion and they just couldn’t afford to do all the handholding. He also said less than 1 % of their loans serviced were land flippers. So, they have gotten out of that line of business for all but existing customers. He also said that if I had a portfolio of at least 10 to 20 loans, they would take me as a client. He was very nice, very professional.
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@karljames that’s good info to know. I’m pretty sure I know which “land course person” recommended them.
I obviously can’t speak for them, but based on what you’re saying, it sounds like one of those things where you probably can work with them if you can show that you’ve got a big book of business and you clearly know what you’re doing, but since 99% of people don’t fit that profile, they just default to “no” unless you can prove otherwise.
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