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Contract Collection Service
We can help you with your owner-financed transactions.
When Would You Need Our Contract Collection Services?
If you are planning to sell real estate, land or even a mobile home, you may decide to finance it for the buyer by selling the property to the buyer on a real estate contract or promissory note and deed of trust. Instead of paying a bank, the buyer pays the seller back according to the terms of the agreement. This could also include payments on leases or rentals, not just sales.
Why Use Alaska Pacific Bank?
While you may be willing to finance a purchase for a buyer, you may not want the hassle of collecting payments and handling the paperwork. Our job would be to collect the payment from the buyer, process it, and then disburse the payment to an Alaska Pacific Bank account for you (the seller) according to your instructions.
Benefits to the Buyer
- You can set up an auto payment option so you don’t have to worry about late payments.
- You will receive an itemized annual reporting of your account activity.
- As a neutral third party, we handle the balance calculations so you can have confidence in your amortization of your debit, which eliminates disputes regarding outstanding balances at payoff.
- You will receive documents back at payoff to clear title.
Benefits to the Seller
- Since we provide the IRS with a reporting of interest, you will not have to provide your social security number to the buyer.
- You have the option of having the payments automatically deposited to your designated Alaska Pacific Bank account.
- The auto pay option and/or payment coupons result in a more timely payment history.
- We send out late charge notices to assist in the collection of late payments, if needed.
Contract Collection Services Features
- We handle collection of payments and late fees.
- We deposit payments directly to your savings or checking account.
- We can automatically deduct payments from the buyer's savings or checking account (even if the buyer does not bank with us).
- You will receive a notice of each payment received on your behalf.
- Account reports show easy-to-read interest and principle calculations.
- Amortization schedules forecasting future payments are available, upon request.
- We prepare IRS 1098 and 1099 forms annually as part of the service.
Contract Collection Services Fees
| Initial Setup Fee: |
$50.00 |
| Disbursement Fee: |
$0.00 |
| Assignment/Assumption Fee: |
$75.00 |
| Reinstatement Fee: |
$50.00 |
| Annual Contract Fee: |
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| From $0 to $25,000 |
$60.00 |
| $25,001 to $100,000 |
$80.00 |
| $100,001 to $1,000,000 |
$150.00 |
| Over $1,000,000.00 |
$225.00 |
We can also collect payments without holding documents for you at a slightly lower rate.
More Information
For More Information, please contact Alaska Pacific Bank’s Loan Servicing Department. In Juneau, call 790-5196. Outside of Juneau, call: 800-478-3050 and ask for Loan Servicing.
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