Newsletter – November 2025

What should I do when my Borrower stops paying?

So, your borrower has been paying timely for years, but then one day the payments stop! What should I do now? While this may never happen to you, having a plan of action on what you will do is critical to the overall success of your investment!

Are there Lender Regulations for Seller Financing?

You decided to sell a property and provide the financing to the buyer. Are there regulations that apply to you?

Should I Sell My Mortgage Note?

You created a Mortgage Note and have been collecting monthly payments, but does that mean you are stuck with holding a loan for the full term? Life is constantly changing and sometimes it is no longer desirable or feasible to wait years to get your money. You as a private lender have options to sell your Note and receive a lump sum today!

Use a RMLO to create your Note

Use a RMLO (residential mortgage loan originator) to create quality paperwork which provides higher resale value.

Although it is not required to use a RMLO if you create less than 3 loans a year, a RLMO will help to ensure borrower has an acceptable credit risk and has the ability to pay.

When created by a RMLO, the quality of paperwork is standardized which makes the note more valuable during future note sales or foreclosure actions.

Ensure the Property is well maintained

The property is the collateral protecting your investment. Ensuring the property is well maintained will help the investment hold value and avoid code violations.

Ensure contracts include verbiage for the borrower to maintain the property and must make repairs when needed.

The best practice is to have an annual inspection of the property exterior.

Use Escrow to collect tax and insurance premiums

Escrow requires borrowers to pay a portion of their tax and insurance in their normal monthly note payment.

Leaving tax and insurance payments as a borrower responsibilities many times will result in the borrower failing to pay.

When creating a note, adding a required escrow payment is a best practice. These escrow payments should be held in a separate account and tracked separately from monthly principle and interest.

Using Escrow will avoid tax liens for non-payment and ensure the property has insurance in case of any event!