For your convenience, our most common customer questions are answered below. If you have additional questions or concerns you cannot find the answers to, please contact us.
What is a note servicing company?
A note servicing company manages and collects the payments you receive from your borrowers on a monthly basis. A note servicing company can collect and record each payment, including the escrow amounts, and disburse the correct amount to the appropriate parties. Additionally, a note servicing company has the resources and time to pursue late payments on a routine basis.
Who needs a note servicing company?
Any investor who owner-finances properties. The collection process can become very time consuming and tedious. If you would like the certainty of knowing your properties are being properly managed and payments are being efficiently collected and disbursed, a Note Servicing company is for you.
What services does Moat Note offer?
Moat Note Servicing offers detailed services for both the lenders and borrowers.
- Welcome Packets are sent directly to the Borrowers
- Monthly Mortgage Payments are Collected
- On Line Access to your account 24/7 (Available to Lenders & Borrowers)
- Payments are processed daily
- (ACH) direct deposit to Lender’s Account
- Accurate records of every payment made and disbursed
- Record and track escrow payments for each note
- Pursue late payments by sending late notices, including but not limited to the 120 day default notice.
- Provide year-end financial accounting required for IRS (1098 and 1099)
- Year-end Escrow Analysis completed on each property
Click BELOW and Listen to Shannon explain the services offered by Moat Note Servicing, LLC
How much escrow is needed to start?
In Texas, the Property Taxes are due in January. The preceding month and the month taxes are due, can be complicated to close in. Some Lenders may require 12 months if you close in these months to ensure taxes are paid. In the following month if taxes are paid, 2 months reserves will suffice. Please see the escrow chart for further explanation.
Please Note: The Borrower is responsible for insurance the first year the note is managed by Moat Note Servicing. An insurance reserve of 2 months will suffice.
Does Moat Note Servicing report to the credit bureaus?
Moat Note Servicing does not report to the credit bureaus.
What are the costs of Moat Note services?
To manage a note on a monthly a basis, we charge the following:
- Non Escrowed File: $35.00 per note
- Escrowed File without an Underlying Lien: $40.00 per note
- Escrowed File with an Underlying Lien: $45.00 per note
There are not any additional fees to pursue late payments. Moat Note Servicing keeps all late fees to cover the labor and correspondence to pursue the late payments.
Is there a set-up fee?
For set up fees, we charge the following:
- File without an Underlying Lien: $150.00 per note
- File with an Underlying Lien: $175.00 per note
If someone signs up with Moat Note Servicing, how long is their commitment?
Contracts are not required to use our services. We strive to provide you with exceptional customer service. If you are not satisfied with our services, we would like to be given the opportunity to address any issues. We require a 60 day notice to terminate your services.
Can borrowers make online payments?
Yes, borrowers can make their mortgage payments online here.