Trust Deeds | Loan Servicing
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Loan Servicing
The following is how a typical loan service is conducted.
- Each month, the loan servicing officer bills the borrower and collects payment, depositing the funds that are received into the account of the investor.
- Once the payment has been received in full, and the funds are cleared, the loan servicing officer will then begin to issue the appropriate checks to the investor(s) involved in the loan.
- At the same time every month, statements and a check that covers the interest earned throughout the month are mailed to the investor(s).
- The servicing agent maintains the payment records, and for tax purposes, the investor will receive a 1099 form.
- If there is a default on the loan, the loan servicing officer may choose to start foreclosure.
- Should there be problems during the foreclosure, or should necessary negotiations need to take place during the process, in-house legal counsel is waiting to offer assistance to the investor.
- Lastly, should the foreclosure be stalled or halted by a borrower’s bankruptcy petition, the in-house legal counsel will immediately try to relieve the stall or request the bankruptcy court provide sufficient protection.
As you can see, using a third party when investing in a deed of trust acts in your best interest, and is something you should seriously consider before you decide to make a trust deed investment. And remember, make sure the loan servicing company you choose has experience, integrity and a good reputation.
Related posts:
- Collection and Distribution of Loan Payments
- Deed Of Trust | Third Party Benefits
- Trust Deed | Loan To Value
- Coppercrest Funding & Trust Deed Investing
- Trust Deed Legal Issues
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