Buying a note with no existing servicer

[Account Closed]

Hi all - I"ve come across several seller-financed notes where the seller/note holder is "self-servicing" the note vs boarding it with a servicing platform. My initial thought is this would be a deal killer since you want to know it's been properly serviced, but does anyone have experience working around this? Aside from making sure title is clear and insurance/taxes are being paid, are there any other important items to look out for? Is it just a matter of finding a new servicer (e.g. FCI) who would be willing to take it on? Thanks!

[Will Barnard]

The important thing regardless if it is professionally serviced or self serviced is to verify the timely payments. Ask the seller to provide copies of the checks, bank statements, etc to verify the borrower did in fact make timely payments. You also want to be sure that thevoroperty taxes and insurance are current and up to date. Other than that, the due diligence on the asset itself.