A bankruptcy filing on a seller-carry borrower converts the loan from a state-law servicing matter into a federal bankruptcy proceeding. The automatic stay under 11 U.S.C. §362 halts the holder's collection actions on the date of filing. The proof of claim under Bankruptcy Rule [...]
Seller-carry holders elect between two impound structures at the closing table — the holder-side impound account or the borrower-side direct-payment structure. Each structure carries trade-offs across federal compliance, holder visibility, operational cost, and failure-mode exposure. The comparison below walks the decision math.How the impound [...]
The questions below cover the impound-account decisions every seller-carry holder faces from the closing table through every annual analysis and the payoff closing-out. The answers point to the federal rule, the state-law analogues, and the operational discipline a clean impound record requires.SetupQuestion one — [...]
The case below is composite — drawn from impound failure patterns recurring in seller-carry files reviewed during compliance audits. The fact pattern is changed; the mechanics are accurate. The case walks the failure points across origination, disbursement, county tax-sale exposure, and the recovery cost.The [...]
Setting up an impound account on a seller-carry note runs in defined steps from the closing table through the first annual analysis. Each step ties to a specific rule in Regulation X and a specific record in the loan file. The procedure below is [...]
The seven mistakes below recur in seller-carry impound practice. Each one creates a specific risk — state servicing-conduct finding, §1024.17 analysis violation, tax-sale exposure on the lien, or §1024.34 refund failure at payoff. The fix on every one is upstream of the operational discipline.Mistake [...]
An impound account on a seller-carry note is the holder's first defense against the two largest threats to the lien — a property tax sale and an insurance lapse. The decision to require an impound is set at the closing table, the mechanics run [...]
The questions below cover the late-fee decisions every seller-carry holder faces from the closing table through every monthly billing. The answers point to the federal rule, the state-law analogues, and the operational discipline a clean late-fee record requires.Note languageQuestion one — Does the note [...]
Late-fee structures on seller-carry notes run as either a flat dollar amount or a percentage of the installment. Each structure interacts differently with state caps, federal Section 32 restrictions, and the §1026.41 disclosure requirements. The comparison below walks the trade-offs.How the flat-fee structure worksA [...]
The case below is composite — drawn from late-fee patterns recurring in seller-carry files reviewed during compliance audits. The fact pattern is changed; the regulatory mechanics are accurate. The case walks the failure points across origination, billing, statement disclosure, borrower dispute, and state finding.The [...]
