In your post you indicated: ?Borrower has good credit. I was not aware he was supposed to be making interest only payments and I am not sure he was aware of it either.?
If neither YOU NOR YOUR BORROWER were aware that interest only payments were due, why would you want to ding the borrower?s credit? Is the principal now due and the borrower unable to pay? Unless you prefer to foreclose in order to take back the property, why not work out a mutually acceptable arrangement with the borrower and modify your original agreement?
I hold a second deed of trust and have been advised by a real estate agent in CA (where property is located) to enlist the services of a loan servicing company who reports the monthly payment habits to the credit bureaus.
Does anyone have any suggestions of companies which meet these requirements?
FYI: The borrowere has not made payments since 1997 onthe interest portion of the note. I want this to report on his credit file before attempting to foreclose. Borrower has good credit. I was not aware he was supposed to be making interest only payments and I am not sure he was aware of it either. Principal balance is $27,500.00.
Re: LOAN SERVICING COMPANIES - Posted by Brad Crouch
Posted by Brad Crouch on December 10, 1999 at 02:29:20:
Lisa,
From what I’ve seen here in California, a loan servicing company is pretty scarce. Escrow companies stopped doing long term “holding escrows” many years ago.
You might be able to hire a California attorney for this, but I suspect it would be very expensive.
I know of one loan servicing company located in Orange County (area code 714). I don’t know if they report to credit bureaus, but I don’t think you can be “picky” about that. Not in the Peoples Republic of California.
I don’t have their phone number handy, but if you call the information operator in area 714, I’m sure you can get it. Ask for “Dee”. She runs the place.