When should I hire a Servicing Company?

Question

I've read on this forum about small servicing companies that note buyers hire after purchasing notes.

When should I hire one and what would they do for me? Is it recommended to always have one and let them service my notes?

Basically, the notes I'm looking at are either very close to obtaining a FC sale date or already have a FC sale date coming up so Im not planning on doing any "loan servicing" or planning to modify and collect mortgage. I'm just buying notes that I can obtain title within a month or two.

Should I still hire a small scale servicing company or is it really not needed? What exactly would they do for me?

Erick V. · Answer

Will the servicing company be responsible for sending out any and all compliance letters, disclosures, notifications, borrower's rights?

Do they have to be Hamp Certified?

What other questions should ask them to know if they're a good reputable company?

Account Closed · Answer

@Erick V.,

If you do hire a servicing company, you should get a few references, make sure they have insurance, and they provide you a copy of the insurance and only hire someone has who been in business for years and make sure there are no lawsuits against them and get everything in writing what they will do for you.

Joe Gore

Doug Smith · Answer

You really need to hire a licensed servicing company regardless of where you are in the process. There are certain steps that they will need to take for you in order to keep you compliant. For instance, they will send out the TILA letter for you. Let me know if you have any questions.