How can SLS help you?
In short, we manage the time-consuming owner-financed loan management activities so you are free to focus on your own life.
Southern Loan Servicing is an owner-financing loan servicing company that provides objective and knowledgeable third-party loan services to borrowers and lenders using owner-financing.
Our staff, software, affiliated companies, and long history allow you to trust that we can structure, administer, and close out your owner-financed transaction efficiently and accurately.
We offer 24/7 online self-service for checking on the status of payments and account balances, handle the standard IRS reporting forms, pay underlying mortgages and escrows, and can work with you on challenges that arise throughout the course of the owner-financed loan.
Accurate Accounting Records
Owner-financed mortgages have a number of features that make them unique and not like a vanilla mortgage. We have seen many cases of poorly handled owner-financed loans where the accounting records or initial amortization tables were incorrect, leaving the entire transaction at risk. Essentially, if the setup and accounting are wrong, neither the Borrower nor a Lender can trust the payment history or payoff amount.
Our 35 years of experience means that we know how to:
- Set up owner-financed transactions
- Handle unique aspects of each deal
- Structure the payments to pay off correctly
- Collect and document all payments openly and objectively
Our independent documentation of payments made and balance outstanding both to lenders and borrowers is critical and gives both sides of the transaction security that their loan details are well managed.
Southern Loan Servicing maintains appropriate accounting recording on each contract and the sums collected, which records reflect the amounts collected as to principal, interest and late charges, and, if applicable, insurance, taxes, and other specified amounts.
All Lender and Borrower funds will be held in a segregated, monthly reconciled, quarterly audited, non-interest-bearing trust account.
Collection and Remittance of Payments
To ensure that all payments are made on time, the best solution is to have a third party loan servicing company overseeing the whole process. The third party collects payments from the Buyer and remits them to the Seller after the requirements stipulated in the owner financed homes contract have been successfully met.
Southern Loan Servicing is responsible for:
- Issuing payment coupons or monthly statements to the Borrower, directing loan repayment to SLS
- Issuing SLS payoff demands, beneficiary statements and Escrow notifications, if necessary
- Demanding, receiving, and collecting all loan payments and payoffs which will be deposited immediately (typically by the next business day) into Southern Loan Servicing’s trust account in accordance with Louisiana’s Office of Financial Institutions requirements
- Issuing annual income tax statements to the Borrower and Lender
- Answering Borrower inquiries, demands, and requests as needed
- Working through special situations pragmatically, efficiently, and with a personal touch
Escrow Management Activities
Escrow is typically used in owner-financed transactions to safely hold funds temporarily in a segregated account that can be used for no other purposes. Escrow accounts should always be managed by a licensed, disinterested third party servicing company.
Southern Loan Servicing is licensed as one of escrow loan agents by the Louisiana Office of Financial Institutions. We have successfully managed escrow accounts for a number of clients, ensuring fair conditions and protecting both Buyer and Seller interests.
Secure Online Loan Account Information Available 24/7 for Buyer and Seller
Southern Loan Servicing provides the option for both parties to safely log in to their online loan account and check the information pertaining to payment history, remaining loan balance, reports to the IRS, potential late fees, and so on.
You can access your online loan account whenever you want to check if you’re up to date with all the changes on the account.
Friendly Customer Service
If you ever feel like you need more information or guidance regarding the loan and payments, you can always count on our expert team. Apart from being able to access your online account 24/7, you can also contact our team for specialized assistance for your particular issue.
The Southern Loan Servicing team is here to make your transaction as painless as possible. Contact us with any questions about your owner-financed transaction.