Rookie Question: Transition from note purchase to servicing

[Jeffrey Allen]

Ok, a really stupid question here to hopefully avoid a really stupid action.  

For the last several months I've been researching potential note purchases from the third party websites.  I've familiarized myself with the fee schedules from a couple of loan servicers that I could potentially use.  I am confident in my ability to understand the numbers and risk, but less confident in how to actually execute.  My question is, what actually happens between acquiring a note and getting it into the hands of the servicer?  Is it as simple as just receiving a set of documents that I then forward to a representative of the servicer?  Is there any other action that needs to happen in between?  Do I need to have the servicer aligned before I finalize the purchase?  

Any explanation or advice would be appreciated.  

[Peter Halliday]

I’m new to notes this year. I encourage you to buy a note.  Best way to learn. After purchasing the seller will send you the full file.  You can pay someone to keep it safe, but you can also get a safe and take care of it yourself in the beginning.  

You do have to file the assignments. There are vendors that can do this pretty inexpensively.  

You don’t have to have the servicer totally inked.  They can do anything until the get the file from the previous servicer.   The big surprise to me was they can’t do anything for 30 days. Also the boarding of the loans takes more time than I thought it would.