Collecting Mortgage Payments
Getting PAID ON TIME is the MOST IMPORTANT thing about Investing in Mortgages!
1. You can send your borrowers:
- A statement every month (with or without a return addressed envelope)
- 12 payment coupons at the beginning of the year (with or without return addressed envelopes)
- 12 envelopes addressed to you at the beginning of the year
- Nothing and just tell them you expect to be paid on time
Advice if the borrower has NOT PAID on time.
2. Print Payment Coupons:
3. Collecting Mortgage Payments – Monthly statements:
You can use specialist programs to produce a monthly statement or you could mail the borrower a photo-copy of the payment form you are keeping.
Or, we have a specially designed software that allows you to keep track of your mortgage receipts either manually or online. Visit our Lender Software page.
4. The Minimum you should do:
We feel that giving the borrower 12 envelopes addressed to you is the minimum. That way there are no misunderstandings about the address or illegible handwriting.
5. When to do NOTHING:
We recommend this only if you really don’t care if the borrower pays or not. Perhaps you made the loan reluctantly, there is a lot of equity in the property and you would be happy to foreclose the loan.
Be careful if this is the residence of the borrower. There are various protections against what the Court perceive to be predatory lending. And yes, we know that no one held a gun to the borrowers head and forced them to take your money.
