A private mortgage is one where the Seller of a property transfers title to the Purchaser and finances the purchase by taking back a promissory note secured with a mortgage on the property. When the Seller in such a transaction does not want the responsibility associated with being a ‘lender’ or note servicer, Escrow Services, Inc. can fulfill these obligations. 

If the Seller or Investor does not want to assume the servicing responsibilities of a lender but rather maintain a passive role, Escrow Services can fulfill both regulatory and ethical obligations, as well as provide ancillary benefits associated with the involvement of an independent third party servicer. These include:

• Complete and accurate records of all payments
• Monthly billing in accordance with CFPB requirements
• ACH drafting of note or lease payments
• ACH direct deposit of note payments to lenders/lessors
• On line account look up
• Optional disbursements to third parties (HOA dues, condo fees, etc.)
• Tax and Insurance escrows
• Providing IRS Forms 1098 & 1099, where appropriate
• Protection of lessees on lease purchases where there is an underlying mortgage(s) by direct payment to mortgagee(s)
• Timely and documented response to borrower inquires, payoff requests, and disputes
• Maintenance of independent third party detailed account payment histories to:
  • Facilitate Borrower/Lessor refinancing requests
  • Enhance valuations for note investors desiring to sell notes they hold
  • Support enforcement of provisions of the note/lease obligation
• Establishing an arms-length relationship in transactions involving friends and family or investments in mortgage notes held in pension plan accounts.