Note Servicing Frequently Asked Questions
To view an answer, simply click the question you are interested in.
What happens when Payment Automation Network services an account?
Does Payment Automation Network, Inc. draw up original documents?
How will a customer know when a new account is setup?
How does Payment Automation Network collect their fees?
What does Payment Automation Network do to collect late payments?
If a late charge is assessed, does Payment Automation Network keep the late charge?
What if there are changes to the note or contract?
Do you report to the credit bureaus?
Do you hold funds before you disburse them?
How much does Payment Automation Network charge for its services?
What happens when Payment Automation Network services an account?
Buyers make payments directly to Payment Automation Network. We record
the payment, calculate the changes to the principal and interest, subtract any
appropriate fees, and then quickly transfers the payment to the seller.
In addition, Payment Automation Network, Inc. provides all the features you
would expect from a traditional mortgage servicer, such as payment coupon books
for the buyer, mailed monthly statements for the seller, online account
information, automatic bank drafts, automatic late notices, the ability to make
payments over the phone, highly trained customer service, and much more. Payment
Automation Network, Inc. can process escrow tax and insurance payments to keep
investments safe.
Payment Automation Network, Inc. takes all the hassles out of a seller financed contract so that buyers
and sellers can spend their time on more important things.
If a customer has a question about their account, who do they call: Payment Automation Network or note holder?
The customer should call the toll free number for Payment Automation Network, Inc. directly. Our customer service department has access to their account information and is ready to assist them in any way.
Does Payment Automation Network, Inc. draw up original documents?
No. Payment Automation Network, Inc. is strictly a third-party note servicing company. We only begin servicing the documents after they are created. We recommend that buyers and sellers work with the appropriate industry escrow and real estate professionals in their area to create the best documents for both parties.
How will a customer know when a new account is setup?
The customer will receive a confirmation letter by mail from Payment Automation Network, Inc., informing them that the account has been activated. This mailing will also provide them with their account numbers and Personal Identification Numbers, which they can use to identify their loans.
How does Payment Automation Network collect their fees?
We keep it simple. Fees are collected monthly, usually on the 20th of the month.
What does Payment Automation Network do to collect late payments?
Payment Automation Network, Inc. provides an automatic late notice program, which advises the buyer in writing that we did not receive a payment on time. If there is a late charge clause in the note, it advises them that a late fee has been assessed. This effective method keeps buyers making payments on time, and helps sellers avoid embarrassing phone calls.
If a late charge is assessed, does Payment Automation Network keep the late charge?
No. All funds belong to the seller. Payment Automation Network holds no beneficial interest in the note.
What if there are changes to the note or contract?
No problem. Any modifications, including payment changes, interest rate changes, name changes, and others, can be applied to the servicing conditions by Payment Automation Network free of charge. Most other Servicing companies charge a fee for changes.
Yes. Not only do we provide all customers with an Annual Summary Statement, we also report to the IRS the total amount of interest paid by the buyer at the end of each year. This important function is required by Federal tax law and we eliminate this hassle for the seller by reporting on their behalf.
Do you report to the credit bureaus?
No, Payment Automation Network does not perform credit reporting. However, we can provide Verification of Mortgage for the buyer, as well as complete payment histories. Our experience has shown that when these documents come from an independent third party like Payment Automation Network they help buyers establish good credit. Payment Automation Network does offer a Profit Recovery Service for bad debt. As part of this optional service, accounts can be reported tot he credit bureaus. Call for details.
Do you hold funds before you disburse them?
In nearly all cases, we transfer the payment in good faith to the seller around the 20th of the month. At Payment Automation Network, Inc., we pride ourselves on how fast we distribute funds from a buyer to a seller. There are certain situations that may require us to hold check payments until the check clears. This typically only occurs when large dollar amounts are at stake. In such cases, the customer is always notified.
I notice that Payment Automation Network charges a fee for NSFs and returned checks. Who will pay the returned check fee?
We attempt to recover the fee from the buyer. However, if we are unable to collect the fee from the buyer, we will ask the seller to pay the fee.
How much does Payment Automation Network charge for its services?
Our pricing depends on the number of loans and the volume of payments to be processed. A small service fee per transaction is typical. The good news is there are no minimums or maximums to worry about. Contact a representative to go over pricing details for your business.
Contact a representative to have your start up package emailed to you.
Need more information?
- Back to the Note Servicing main page
- View the Note Servicing Process
- View the Fee Schedule
- View the Getting Started Page
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