Introduction

Typically, real property is acquired with funds obtained through financing, which is traditionally provided by a financial institution, mortgage company, or third party that takes back a Mortgage or deed of trust on the property as security for the proceeds funded.

When a seller provides the financing, versus a bank or other third party, the loan is called “Seller Financing.” With Seller Financing, the seller will loan all or part of the purchase price and take back a Mortgage on the property as collateral. In seller financing, the Seller acts as the lender and carries back the contract. Instead of receiving a lump sum of cash, principal and interest payments are received from the buyer in accordance with the contract. Buyers need only meet a seller’s approval requirements and not those imposed by the secondary market. Having the seller maintain the contract with the buyer can be troublesome, thus a servicer, such as LoanCare, can protect the seller’s investment while providing the technology and services as such, ensuring the buyer pays taxes and insurance on the property and providing monthly statements and end-of-the-year tax reports. This is often referred to as Accounts Services, Contract of Sale, or simply contract collection.

As a neutral third party, acting as your Servicing Agent, we will ensure accurate, reliable, and proper administration of the contract between you, the seller, and the buyer (contract servicing) of your property by handling all the details of collecting the monthly payment.