For a fee our company will service a Note secured by real estate. Because we are experts on real estate servicing and the rules for collecting debt, this can be a valuable service. We accept payments from the borrower, then disburse the funds to the lender. At the end of the year, we provide the 1098 INT for the borrower indicating how much interest they paid and a 1099 INT to the lender for the interest collected (this is required by the IRS and the State).
If borrower fails to pay, we handle all collections, including formal letters and potentially foreclosure. We track the insurance to make sure the real estate is always insured and in the event borrower fails to pay or provide proof, we force place insurance to protect the investment.
We also track the taxes to make sure they are paid (taxes always are senior liens to even the loans on the property). We provide reports to borrower or lender upon request and we handle all inquires and payoff requests.