CONTRACT SERVICING
Let Baines help you take the stress and effort out of managing your own loan agreements. Whether you are dealing with seller financing, loaning money or collecting payment of any kind, we can get you set up efficiently and hassle free.
What is Contract Servicing?
As a Contract Servicing Service, we are an independent third party agent that receives and disburses payments on contracts and deeds of trust between private parties.
Our services include accepting payments from buyers, disbursing funds to sellers, payment history and year-end interest reporting to the IRS. Our services also include payment coupons to buyers, payment notification to sellers and pay-off quotes.
Advantages to the Buyer……
By using a third party collection agent, the advantage is that no matter what happens to the seller, such as death or divorce, the documents held in escrow will release the lien. Also by using a collection agent, you will be issued a year-end 1098 statement and account history. In a True Escrow the seller deposits the original Real Estate Contract and Fulfillment Deed or Deed of Trust and Request for Reconveyance with the escrow agent.
Advantages to the Seller…….
As a seller, you have assumed the role of a lender. This means you must maintain payment records and you must report the amount of interest received to the IRS. By using a third party collection agent you will eliminate these responsibilities. As a collection agent we will collect and remit to you the buyer’s payment. We also figure principal and interest in accordance to your contract. When the contract is fully paid we will send all original documents to the appropriate parties. And we will also issue you a 1099 form at the end of the year for interest reporting.
Please call or email us if would like more information on how we can help you with contract servicing
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