Does the Note Servicing Center originate or create documents (notes and trust deeds)?

No, Note Servicing Center is a third party authority. We take care of servicing once the Note has been completed and is in force. Buyers (Borrowers) and Sellers (Investors/Lender) should seek out Professionals such as Real Estate Brokers, Attorneys and/or Escrow Companies for this task.

Does the Note Servicing Center report to the IRS?

Yes, Lenders, Sellers and Investors are required by IRS to report both interest received from the note and the interest paid by the borrower on the note. These forms 1098 – Borrower and 1099 – INT- Lender are required to be completed and sent to the individuals during the month of January each year. The Note Servicing Center relieves the Payor/Payee from this hassle by taking care of both Form 1098 and the 1099 – INT at No Additional Charge.

When a note is set up with the Note Servicing Center (NSC) what happens next?

A Welcome Letter is sent to the Buyers/Borrowers directing them to make payments directly to the Note Servicing Center along with Payments Coupons. The Note Servicing Center records the payment, calculates the changes to the principal and interest, subtracts any appropriate fees, and then transfers the payment to the Seller/Lender. The payment is transferred by Direct Deposit into the Bank or wherever directed by the Lender/Seller. The Note Servicing Center provides all the features you would expect from a traditional mortgage servicer, such as payment coupons for the buyer, mailed monthly statements for the seller, online account information, Direct Deposit and Automatic Withdrawal, automatic late notices, the ability to make payments over the phone, by credit card, or through automatic withdrawal from the borrowers account.

The Note Servicing Center takes all the hassles out of a privately financed contract or seller carry back note so that Investors, Lenders or Sellers can spend their time on more important things.

Why do you need my email address?

To better serve you and keep in close contact with you with respect to your account, it is mutually convenient and efficient to reach you via e-mail. We try to keep servicing affordable therefore, when possible using e-mail rather than regular mail or telephone helps keep your cost down. Please be aware we do not share your email address with anyone.

Is Note Servicing Center Licensed and Bonded?

The Note Servicing Center is licensed by the California Department of Real Estate and carries a Fiduciary Bond to insure against employee theft. We reconcile our Trust Account which is under the jurisdiction of the Department of Real Estate daily and on a monthly basis.  Also the trust account is subject to an independent auditing by a licensed CPA on a quarterly basis to insure the accuracy and transparency of your account.

When are payments posted?

Payments are posted on a daily basis. Payments are disbursed when cleared as “good funds.”

We post payments as received, throughout the day. Payments are credited the business day on which they are received. They are posted to your online account for your viewing by 6:00 PM PST. Payments are disbursed when they are cleared by the bank as “good funds”.

Good Funds are defined as: cash, cashiers check, certified funds, money order and Wired Funds deposited to the Bank the same day as disbursement. Personal Checks are NOT “good funds” until they have been cleared by the bank. In our present banking system, personal checks, take between 5 – 10 days to clear as most personal checks are drawn from out-of-state banks.

The State jurisdictional authority prohibits a note servicing company to disburse funds not defined as “good funds”, as those kinds of checks cannot be paid from other Trust Funds placed with the Broker and the Broker cannot commingle Broker Funds into Trust Accounts to cover NSF checks.

Wires, Cashier’s Checks and other types of certified funds are generally released within 48 hours. Since funds obtained via auto-debit can also be recalled, we hold them for ten days from receipt.

Can a Borrower setup Automatic Withdrawal through Note Servicing Center?

YES, just go to the “Forms” Click Here at to download and complete the Authorization for Borrower to ACH Form and FAX or email it to us or contact

Can Lenders receive their payments via automatic-deposit?

Yes, this is our preferred method. Go online to save the form to your computer and email or fax the completed form for Automatic Deposit our office at or fax to 559-665-3457.

Does Note Servicing Center make interest on our money while it sits in the clients accounts?

Absolutely not. In Accordance with the Commissioner’s Rules and Regulations of the Department of Real Estate, as a licensed servicer we are required to hold funds in a non-interest bearing trust account.

When is a payment considered late?

The day after the due date. A late charge is levied if one is agreed to in the promissory note or contract. A due date and the terms of the grace period and late fee are specified in the Note or contract. If there is a grace period, the late fee will take effect after midnight on the last day of the grace period. Payments must be RECEIVED by our office prior to this time to avoid a late fee. Mail delays or online payment issues are the responsibility of the Borrower.

If a client has a question about their account, who do they call?

Your call is always welcome by calling the Note Servicing Center at 559-665-3456 option 4. Personal assistance is available through our Customer Care Call Center from 9:00 – 4:30 PST Monday – Friday. During other times, please call and leave a message with your name, account number and telephone number. Your call will be promptly returned.

Beside the website, what other ways can we (the lender) find out if a payment is past due?

The borrower is notified by mail when the grace period provided in the note has expired . This notification is also sent to the lender via e-mail. Each ten day period thereafter, for a total of four notices the borrower will be sent an additional late notice, including the fourth and final notice. An e-mail notification is sent to the lender each and every time the borrower receives these four notices

How do we update our contact info?

From the “Forms” page on to download and complete the Update Information Form Click Here and email or fax to the Note Servicing Center 559-665-3457 or mail to 3275 E. Robertson Blvd., Ste. B, Chowchilla, CA 93610.

How will a client know when a new account is setup?

They will receive a confirmation letter by mail or e-mail from the Note Servicing Center informing them the account has been activated. This mailing will also provide them with their account numbers.

How are Borrower payments applied?

Payments received will be applied in accordance with the terms of your Mortgage or Trust Deed Note. In most cases, the Mortgage note will require that funds, be first applied to any payments past due. Once the account is current, funds will be applied first to interest, any outstanding fees, and then to principal reduction.

Can a Borrower send in extra money?

Yes, please include an instruction on how you intend the extra money to be applied. Example, assuming your loan is current; the additional funds would be applied as an extra principal payment.

How does the Note Servicing Center get paid?

This one is simple. We keep it from fees collected at the time of payment processing from the appropriate party indicated on the servicing agreement.

Does the Note Servicing Center keep the late fees collected from the borrower?

No, not all of it. The Note Servicing Center receives 50% of the late fees. The beneficiary (seller, lender) receives 50% of late fees collected.

What does the Note Servicing Center do to collect late payments?

The Note Servicing Center provides an automatic late notice program. This involves late notices sent to the Borrower in writing, advising them we did not receive a payment on time. If there is a late charge clause in the note, we advise them this fee will be assessed. These notices are sent the day after the grace period has passed and then in ten day intervals after that until four notices have been sent.

The last notice, informs them of the seller’s pending intent to foreclose which is sent by mail to the buyer? This notice has proven to be a highly effective means of turning delinquent accounts into current pays.

Does the Note Servicing Center prepare original documents?

No, the Note Servicing Center is a third party servicer. We are servicing loans after they are created. We recommend buyer, sellers work with professionals engaged in and authorized to prepare documents. If and when a note is in escrow either as a new note or an existing note for a buy/sell escrow, we suggest you contact us at 1-209-966-3445 Ext. 12 and we will be pleased to send a servicing package to escrow including the Authorization for Servicing for signature and the Note Information Form to be completed. With your instructions Escrow will obtain the Authorization signature, complete the note information form and send the completed documents to us along with the set up fee.

Does the Note Servicing Center hold the original documents?

The Note Servicing Center is pleased to act as custodian of the Original Documents for you at no charge. The Note Servicing Center holds original documents securely until the note is paid off. At that time, the documents are available for reconveyance if paid or assignment if it is sold.

What if I do not want the Note Servicing Center to hold my original documents?

No problem. Remember, a Promissory Note is a negotiable instrument and should it be lost there is significant risk. Additionally, when the Note is paid off, it is not unusual for the beneficiary (Payee) to misplace the Note or should they die, the heirs cannot locate the note. The original note is required in order to reconvey or record a satisfaction of mortgage.

Does Note Servicing Center escrow funds for Taxes and Insurance?

YES, if you would like to set this up contact

For an additional fee, we will. We do require the Borrower or Lender to provide us with the invoices of the amounts to be paid NO LESS THAN 72 hours prior to their due date. After faxing or delivering the tax or insurance bill, please contact our office to verify the receipt of the invoices and status if an invoice is pending payment. We are not responsible for fees or penalties if the invoices were not sent in a timely fashion or we did not receive the necessary funds.

How can an impound account be cancelled?

We must receive the agreement of both the Seller/Investor (Beneficiary) and the Buyer (Borrower) in writing.

What type of year end statement will I receive?

The Note Servicing Center prepares and sends out the 1099 and 1098 at year end at no cost to you. A year end summary of all payments received and paid out is also available upon request. For additional reports that are available at no cost, contact our office at with your request or question.

What is Accrued Interest?

This is the interest incurred from the last “Paid to Date” up to the date another payment is made. The current month’s payment is for the prior month’s interest. A good way to remember this is consider that interest is like “rent” paid on money borrowed. You pay it “after” you have used it.

What happens when a loan is paid in full?

Prior to the receipt of funds to payoff the loan, the beneficiary of the note, upon request, will be provided with a demand for payoff form for their approval. Once approved the demand is sent to the closing agent. The beneficiary is requested to send the original documents to the Note Servicing Center so we can forward them to the closing agent along with other documentation in order for the note and deed of trust and/or mortgage can be satisfied or reconveyed The Note Servicing Center will disburse funds to the Lender(s), release the lien on the property and deliver any overage of funds back to the Borrower.

How can I tell if you have received my Borrowers payment?

As a Lender, you can view your account activity on our website at You will be provided a password to enter your password protected lender account. The website is updated with all of the day’s activities each day, by 6:00 pm PST. Please use our website as often as you like.

Does the Note Servicing Center report to Credit Bureaus?

NSC does not automatically report late or missed payments to the credit bureau. Typically note brokers who deal in the buying and selling of notes request we don’t as it has a negative effect on the value of the note when negotiating a sale.

In this particular financial environment, entrepreneurial professionals and rehab clients who have developed a business model which includes moving property using a Lease/Option or Contract of Sale, request we report to the credit bureau in order for the payor to establish a track record of credit to obtain a new loan. We can provide a Verification of Mortgage along with a complete payment history. When provided, these documents will come from an accredited third party servicer like the Note Servicing Center. It typically will be acceptable to the underwriter of the new loan to assist the buyer in establishing credit and obtaining a new loan.

Who is Note Servicing Center?

We are not your Lender. We are a licensed, bonded and insured company retained to oversee the collection and application of your note/loan payments. More detail is provide in the “About Us” page of this website Click Here

What do I do if my loan is transferred to or from Note Servicing Center?

Federal laws protect you in cases where your servicing has been transferred. During the first 60 days of the transfer, you are not considered late if your payment was received by either servicer within your grace period. If a loan is secured by real property containing one-to-four residential units, California law requires the old and new servicing companies to deliver notice to the borrower when the servicing/collection function is transferred. This is required whether the transaction is subject to the Real Estate Settlement Procedures Act (RESPA) or not. The notice must be delivered before the borrower is obligated to redirect the payments.

What is a “Goodbye Letter”?

Typically, when we are advised a portfolio of loans will be assigned (transferred) to us, we contact the existing servicer and discuss with them the best method to transfer the information and convert the client data. The discussion entails how best to seamlessly merge the information and data from their software into our database and software. The goal is to simplify, if possible, a seamless and user friendly transition for the borrowers. An attempt is made to do all of this electronically and reduce the amount of human error when it is done manually.

Once we have established how we are going to transfer the servicing then we discuss the timing of the “Goodbye” letter sent by the old servicer and the Welcome Letter to be sent by the Note Servicing Center.

We do have a sample of a “Goodbye Letter” and “Welcome Letter” which is located on the Forms Page of our website Click Here

Can I setup Auto-Pay through Note Servicing Center?

Yes. Note Servicing Center utilizes a third party vendor to process automatic pay for Borrowers. By clicking the “Make a Payment” link on our Homepage at you can follow a few easy steps to setup a one time or recurring debit. Visit our “Forms” page for the Auto-Pay form. Click Here

How are Borrower’s payments applied?

Payments received will be applied in accordance with the terms of your mortgage note. In most cases, the mortgage note will require that funds, be first applied to any payments past due. Once the account is current, any additional funds will be applied to any outstanding fees, costs and advances, and accrued interest prior to being applied as a principal reduction.

If I am not able to make my payment on time, should I notify you?

You are welcome to do this. We will notify your lender of your call and request them to advise us on what action, if any, is necessary.

What happens if my check fails to clear the bank?

You will be notified of your check being returned by your bank and a fee will be assessed. “Good Funds” (Certified Check or Money Order) will be required and must be delivered as soon as possible. We are prohibited from re-depositing the check.

Can I invest in Notes and Trust deeds through my IRA or other qualified plan?

You may be able to invest your IRA, family trust, or pension funds in Trust Deeds/Mortgage Notes. Or, if you’re leaving your employer, you can roll your 401k into an IRA and invest in trust deeds. Contact us for names of IRA Custodians that can help you learn how to invest your funds in secured trust deed investments in this manner.

The Note Servicing Center has prepared a FREE booklet “Turbo-Charge Your Retirement Plan with Real Estate Notes” which is available to you FREE of charge  You will find it on our home page to download at no cost or obligation.

This is not a new opportunity, actually you have been able to buy real estate and trust deeds within your IRA since IRA’s were created over 30 years ago. Many financial professionals are unfamiliar with this, and continue to recommend bond and mutual funds for IRA investments. Also, some institutions limit investment choices to funds and products for which they’ll earn a commission.

Do I have to use a loan servicing company?

Unless exempt, the Investor holding a Note or payments in their self directed IRA cannot have constructive receipt of the cash flow. The Servicer therefore, acts as the accommodator for you and the IRA Custodian/Administrator by receiving the payments and disbursing into the Investors IRA Account. Additionally, the Servicer provides the necessary “third party authority” for enforcement of the terms of the note and satisfies the beneficiaries (investors) mandatory obligations to the Payor. Risk management is also provided through impounding for taxes and insurance.

Multi-Lender loans (Fractionated) whether in or not in an IRA, MUST HAVE a licensed Servicing Agent. If your note/loan is a single lender transaction, you may choose to use one to avoid the compliance issues and the hassle of hearing “the check is in the mail”.

Whose interest does Note Servicing Center represent?

The Note Servicing Center is not an Agent for either party. Our fees can be paid by either the Lender/Investor (Beneficiary) or the Payee (Borrower). The choice is up to negotiations at the time the transaction and/or documentation is put together. We do, however, work in the best interest of both parties. Keep in mind that with respect to Multi-Lender loans, the lender/investor (beneficiary) MUST employ a licensed servicer.

What is a Multi-Lender Loan?

Your trust deed investment will either be secured by only one lender or note holder or a more than one lender or note holder (fractionalized) deed of trust. “Fractionalized” promissory notes and deeds of trust, when negotiated by a Mortgage Loan Broker are subject to regulation by the DRE, which enforces the Real Estate Law, and the Department of Corporations which enforces the Securities Law.

The Real Estate Law includes what is known as the “multi-lender law.” This law imposes certain restrictions including: (a) no more than 10 lenders or note holders (you and your spouse would count as one lender or note holder on a single investment); (b) a licensed servicing agent must service your loan and have a written agreement (loan servicing agreement). Other terms and conditions apply in the structuring of a multi-lender (fractionalized) note.

For additional information including complete requirements in the structuring of Fractionated Notes in California, please refer to the Booklet “Trust Deeds, What You Should Know” offered FREE to you on this website.  Although this booklet refers to CA Mortgage Loan Brokers only. If you do business in States other than CA, it is likely similar laws are in place. We suggest you check with the governing authority in your State. Remember, the Note Servicing Center has the authority to service promissory notes and mortgages nationwide. Loan Origination in CA only – not in all states. The business model of the Note Servicing Center, does not include originating notes or buying and selling notes or mortgages.

We do service the portfolio of Note Brokers and Buyers nationwide as well as individual note holders. When an individual contacts the Note Servicing Center with a note or notes for sale, we are pleased to provide them with a note information form to complete, which we pass on to Investors and/or Note Buyers we have in our Note Servicing Portfolio. Typically, we simply introduce the note seller with the note buyer prospect direct. We do request, the new note owner continue to use the Note Servicing Center for their servicing needs. We do NOT compete with our Note Investors by purchasing notes.

Can the Note Servicing Center Service Notes and Contract including Multi-Lender (Fractionated) Loans structured in other states?

The Note Servicing primarily services private lenders who originate loans, mortgage brokers who purchase existing loans and the investor community with either a portfolio of privately held notes or private mortgage pools with multi-investors and fractionated loans and notes.

Yes, we offer standard loan servicing nationwide which entails Basic Collection, Processing and Disbursement as well as provide optional escrow/impounds service. Services provided by our company can be found Click Here. Currently, we do not offer specialty loan servicing such as Default Servicing and Foreclosures. Each State widely differs in their foreclosure laws and security instruments so it would be virtually impossible for us to provide foreclosure on a nationwide basis. We do support and cooperate with foreclosure agencies however, by providing the servicing documentation needed to commence the foreclosure action.

The CA Department of Real does not require a Loan Servicing Company to be licensed in every state where the security for the note is located. The Licensing Agency in CA has determined that providing the CA Department of Real Estate has jurisdiction over the Note Servicing Trust Account and the Licensee is in compliance with all the Commissioners rules and regulations, we are empowered to service notes regardless of the location of the security for the note.

The Note Servicing Center is licensed by the CA Department of Real Estate as a Mortgage Broker and also registered as a “threshold broker” which requires auditing of our Trust Account by a licensed CPA who independently reports to the DRE on a quarterly basis and prepares an annual financial statement to the DRE. Our Trust Accounts are required to be reconciled on a monthly basis, we are bonded. Our computer system meets all the requirements of Trust Accounting and is updated as new regulations occur.

When will I receive the funds from my Borrower?

Payments are posted on a daily basis. Payments are disbursed when cleared as “good funds.” We post payments as received, throughout the day. Payments are credited the business day on which they are received. They are posted to your online account for your viewing by 6:00 PM PST. Payments are disbursed when they are cleared by the bank as “good funds”.

What if I have lost or never received a check sent by the Note Servicing Center?

Two weeks from the date of issue we will place a stop payment on the old check and que a new one to print two weeks from the stop date. NOTE: If you would like to sign up for automatic deposit, we will waive the $25 stop payment and re-issue fee. To request auto-pay, please download the form from our “Forms” page. Click Here

If I receive my payment via ACH, will I receive a breakdown or statement?

Yes, you will receive an email notifying you of the deposit and providing a breakdown of the funds sent.

What if my Borrower is seriously delinquent?

We will notify the Lender for instructions on how to proceed. If the Lender chooses to move forward with a Modification Agreement and authorizes the Note Servicing Center to provide the Borrower with the Lenders contact information, we will do as directed. If and when a Modification Agreement is drawn with outside counsel or outside assistance; we will reset the loan servicing set up with the new terms and conditions as reflected in the modification. There will be a small charge for the reset. Contact our Processing Department for cost and applicable fee at 559-665-3456 Ext. 301 or email

If the Lender chooses to move forward with Foreclosure, upon request we will provide a payment history, loan status and other documentation required by the lender to assist in moving forward with the foreclosure action.

When can I or should I foreclose?

The Note Servicing Center does not provide Foreclosure Service at this time. We have made available to you a downloadable PDF booklet originally published by the CA Department of Real Estate entitled “Trust Deeds, What you Should Know”. To get your FREE copy go to our home page

The foreclosure procedures vary from State to State. Information relative to Foreclosure Procedure and Process in California is included in the Booklet “Trust Deeds, What You Should Know” offered on our website.

To exercise a non-judicial foreclosure against a borrower’s property, the lender(s) must follow certain statutory procedures set forth in the law. A lender can begin a non-judicial foreclosure (without proceeding with a lawsuit to foreclose) when a borrower defaults under the terms, covenants and conditions contained in the Note and/or Deed of Trust. Most often a non-judicial foreclosure is begun because a borrower has not paid one or more of his/her/their regular installment payments.

If you have additional questions, please feel free to ask in the area provided below. Please include your e-mail address. Thank you.

Expanded Services

The Note Servicing Center offers an extensive business support system for Investors, Brokers and Lenders holding Real Estate Notes. We feel confident we can provide the note and loan services necessary to make your business even more successful. To expedite a full transfer of your loans for servicing into our proprietary software, could take as much as 2 weeks depending upon the complexity of the process. Much depends on the fields and format of the program and software you are currently using.

As a company on the “cutting edge” of technology, we may be able to integrate your present servicing portfolio easily and quickly into our system. But you can rest assured that we will do all the work to make the conversion process as seamless as possible for Investors and Borrowers.

Here are the steps:

  1. When you contact the Note Servicing Center to transfer your entire portfolio of notes into our system for servicing, we will schedule a time to visit with you about your loan servicing needs, the platform you are currently using and special needs you may have.
  2. We prepare and submit a Loan Servicing Proposal which includes information about what the Note Servicing Center is prepared to do for you to save you money, support your objectives and help you and your company move up to the next level. The proposal will be custom made to fit your needs.
  3. The Note Servicing Center does not buy or sell notes. Servicing is our only business. However we understand totally the importance of not compromising the integrity of your client base. Therefore, to protect your interest, it is our standard practice to execute a non-circumvent agreement to cover that base as part and parcel of the Servicing Agreement. agreement