PRO-ACTIVE
CONTRACT SERVICING

Contract Collection Services:

- As the Purchaser - 

Impound Accounts for Payment of Taxes

As a purchaser of real estate you must be sure that the real estate taxes, personal property taxes and hazard insurance are kept current.

Failure to pay the taxes results in a possible foreclosure by the local taxing authority. If the hazard insurance is not paid and a fire occurs, you could be left with vacant land that has a value less than the outstanding balance owed.

Fidelity Contract Services, Inc. can handle reserve accounts for real estate taxes, personal property taxes and hazard insurance premiums. Our fees for this service are very competitive. A reserve account will spread out the payments so you do not have a large payment for these items.

True Escrow

Most services offered by a third party contract collection agency benefit the seller. A True Escrow is a service all purchasers should require on any sale which involves the seller as a lender.

In a True Escrow the seller deposits the original Promissory Note, Deed of Trust and Request for Full Reconveyance or the Statutory Warranty (Fulfillment) Deed with the escrow agent. The escrow instructions specify that the seller deliver all dominion and control to the escrow agent.

Upon payoff of the account, these documents are recorded on the purchaser's behalf.

The advantage to the purchaser is that no matter what happens to the seller, such as death, incompetency or divorce, the documents held in escrow will release the lien. If a True Escrow is not used, the requirement for court approval of a new authorized lien release signature may result in delays.