Does a non-performing note have to be with a servicer?

[Sandy Uhlmann]

Do all non-performing notes have to be boarded with a servicer BEFORE they are worked out?  The non-performing notes have some of the highest monthly fees. (usually around $30/month)  For non-performing loans which may never work out or ones that are in long workout states such as NY, this amount can add up quickly if you have a number of these notes and they are not generating any income.  If you have someone other than the servicer work out the loan, is there any law that states that these non-performing notes have to be boarded with a servicer? Can I wait until AFTER I get a workout (if it ever happens) before boarding the note?  Can I just deboard some of these notes that have little chance of working out from the servicer and tuck them away for safe keeping just in the off chance that the property sells or re-fis?

I am aware that some sellers will not sell you a note unless you have a servicer to transfer it to.