Note status? - Posted by cmb

Posted by Tony-VA on December 19, 2000 at 13:34:54:

Servicing the note simply refers to collecting the payments on the note, sending out late payment notices etc. to collect on the note.

This lender may service the note also by sending you the proceeds after they take out their fees.

Owning the note is just that; who is entitled to be paid.

Let’s say you buy a note and retain this lender to service the note.

You would own the note and the lender would take care of the collection (for it’s fee).

Tony-VA

Note status? - Posted by cmb

Posted by cmb on December 19, 2000 at 12:25:37:

What is the difference between owning a note and servicing a note? and why does it matter? I’m working with a lender who does both, but don’t understand what that lender’s responsibility is.