Experience indicates it not unusual for an Exchange Client involved in a Delayed Exchange to take a promissory note as boot to balance equity on the property relinquished or execute a promissory note to balance the equity on the property being acquired.
Although this considered “unlike” property received or given, we have assisted qualified intermediaries ( accommodators) to take care of the collection and servicing on the note.
If the note is not assigned the situation could involve an installment sale within the Exchange. Exchangors and Intermediaries tell us they have found it difficult to locate a professional note and loan service provider, with the experience and ability to take care of the monthly collection, distribution, processing as well as management and reporting during this short term.
The owners of Note Servicing Center have been involved in 1031 tax deferred exchanges both as principals and brokers for over 26 years, they understand the nuances involved in a 1031 tax deferred exchange. The sole business of the Note Servicing Company is to provide accurate, reliable Note Servicing and Trust Deed Management.
Our clients include Trust Companies, Title and Escrow Companies, Pension Administrators, Attorneys, Accountants, Real Estate Brokers and Lenders. Our computer system meets the requirement of Department of Real Estate Trust Fund Accounting and is updated as new regulations occur. The Note Servicing Company is Bonded and Licensed by the CA Department of Real Estate and is authorized to service loans nationwide providing the Trust Account is under the jurisdiction, auditing and reporting to the CA Department of Real Estate.
No Note is too difficult to service regardless of the terms, payment schedule and/or security of the debt instrument. There is no penalty to cancellation providing a 30 days notice is received. Our services can be tailor made to suit the needs of the Exchange Client.
The Note Servicing Center offers an extensive business support system for Investors, Brokers and Lenders holding Real Estate Notes. We feel confident we can provide the note and loan services necessary to make your business even more successful. To expedite a full transfer of your loans for servicing into our proprietary software, could take as much as 2 weeks depending upon the complexity of the process. Much depends on the fields and format of the program and software you are currently using.
As a company on the “cutting edge” of technology, we may be able to integrate your present servicing portfolio easily and quickly into our system. But you can rest assured that we will do all the work to make the conversion process as seamless as possible for Investors and Borrowers.
Here are the steps:
- When you contact the Note Servicing Center to transfer your entire portfolio of notes into our system for servicing, we will schedule a time to visit with you about your loan servicing needs, the platform you are currently using and special needs you may have.
- We prepare and submit a Loan Servicing Proposal which includes information about what the Note Servicing Center is prepared to do for you to save you money, support your objectives and help you and your company move up to the next level. The proposal will be custom made to fit your needs.
- The Note Servicing Center does not buy or sell notes. Servicing is our only business. However we understand totally the importance of not compromising the integrity of your client base. Therefore, to protect your interest, it is our standard practice to execute a non-circumvent agreement to cover that base as part and parcel of the Servicing Agreement.
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