How Loan Servicing Works
Your loan payments are made to a Traditional Mortgage Servicing Company in most cases. At the Hard Money Capital Group it is important that all parties involved have accountability and a trusted 3rd party payment administrator helps insure just that. At any time a record of payments can be requested and provided to all those involved.
Hard Money Loans versus Traditional Loans
It is important to point out that Hard or Private Money Mortgages are different than more traditionally backed government, conforming, or securitized mortgages. The funding for such loans are mainly provided by individual investors to individual borrowers serviced a servicing company in business mainly to service mortgage loans. The servicing company has an interest spread agreement with the investor(s) that fund a mortgage to distribute interest from mortgage payments to the investor and the Hard Money Capital Group. The borrower is typically responsible for a $15-$35 monthly fee payable to the servicing company for administrating the mortgage.
Loan Servicing Companies
The Servicing Company is also added security that our borrowers have to insure they are being given proper credit for their payments. This added security protection is important to makes all involved more comfortable with a Hard Money Transaction.