Account Servicing

What is Account Servicing?

An escrow related function whereby the servicing of an agreement/contract between two or more parties is performed by an impartial third party. These agreements/contracts may be secured or unsecured, the terms & conditions of the agreement/contract dictate how an account is serviced. The types of agreements/contracts generally serviced include, Note & Deed of Trust, Mortgages and Lease Agreements.
 

Benefit for Sellers

Sellers find it especially advantageous to have a third party maintain records for them in case they wish to pledge their receivable from the note or contract as collateral in order to obtain their own financing. Most lenders prefer to receive information about collateral from an impartial service who can furnish documents if necessary.
 

Benefit for Buyers

Buyers benefit using Account Servicing since the release document must be placed with us, thus assuring the buyer the lien will be released upon payment in full of the obligation. Account Servicing is also helpful when buyers apply for other loans, since we can supply information regarding their account and payment history, which they in turn can give to potential creditors.

Once the sale transaction is completed, Fidelity National Title’s Account Servicing Department provides the following services for the buyer and seller:

  • Ensure that the original documents are safely stored
  • Send the buyer payment coupons
  • Calculate principal and interest portions of payments
  • Provide detailed payee check stubs
  • Send late notices when requested by seller
  • Set up impound/escrow accounts to collect tax and insurance payments
  • Send year end statements to payor and payees
  • Provide payment histories, status reports, pay off statements and mortgage verification
  • Professional account servicing representative to answer questions about individual accounts
  • Competitive rates
  • Control reports for customers with multiple account portfolios
  • Full foreclosure and forfeiture services through Fidelity’s in-house foreclosure Department
 

What is...?

Carry Back: Seller agrees to carry a note for part (or all) of his equity in the property he/she is selling. [Seller provides partial financing]
Wrap: Seller Wraps the first Note & Deed of Trust plus his equity carry-back and creates one, “all inclusive”, Note and Deed of Trust.
 

Reasons for Creating a Wrap

  • Seller wants to sell house
  • Buyer cannot qualify to assume seller’s mortgage
  • Seller thus agrees to finance his equity carry-back, plus theoretically, maintains responsibility for his original mortgage balance
  • Seller Wraps the first Note and Deed of Trust (his mortgage obligation), plus the amount of his equity carry-back, creating one “all inclusive” Note and Deed of Trust or Agreement for Sale

Contact FNT Accounting Servicing for more information.