What is a Note or Loan Servicing Company?

• A note or loan servicing company collects promissory note payments on your behalf.  Loan servicing includes sending monthly statements, collecting monthly payments, maintaining records of payments and balances, and managing escrow funds (if applicable).  Funds are then remitted to any underlying liens and to the note holder.  Additionally, a servicing company has the time and resources to follow up on any delinquencies.
• 
  

How much escrow is needed to start?

• The legal minimum reserve of 2 months (1/6 annual payments) will be due to start.  Additionally, property taxes for the months prior to start of servicing will be due.  Please see the escrow chart here [link to download document] for further explanation.
• Please Note: The Borrower will be responsible for the first full year of insurance (at closing), or the first year the note is serviced by Polaris Management (if transferred or new escrow account is managed).
• 
  

Does Polaris Management report to the credit bureaus?

• We do not report to the credit bureaus at this time.  Please be patient while we work to provide this service to our Lenders and Borrowers.
• 
  

What does it cost to use Polaris Management?

• There is a one-time Set-Up fee of $150 and $45 monthly servicing fee per address.
• 
  

How long is the commitment?

• No long-term contracts.  We require a 30day notice to terminate a file so we are able to send disclosures and prepare final accounting.  We ask that you give us 3 months minimum to show the value we bring to your portfolio.
• 
  

When and how are monthly statements sent?

• Your monthly statement will be issued via email on the 25th of each month.
• 
  

When are payments due?

• All payments are due on the 1st of each month.  Late fees will be added after the 10th of each month, unless your notes states earlier.
• 
  

How can I make a payment?

• Payments can be made via check or money order made out to: Polaris Management LLC and mailed to PO Box 434, Kyle, TX 78640.

• We offer recurring ACH bank draft at no additional cost. For last minute-payments we accept wire transfers and Venmo.
• 
  

Will you notify me when payments are received?

• As the Lender – Yes, you will receive notification by email when a payment has been received on your file.  You will also be notified if a statement has not been paid in full by the 11th of the month.

• As the Borrower – Yes, you will receive an emailed receipt when your payment is being processed and how it is applied to your loan.  You will also receive a late notice with added late fee if no payment is received by the 11th of the month.
• 
  

My payment increased. Why is that?

• There has likely been a change to your escrow account.  If Polaris Management is servicing the escrow account, you will receive a notice and explanation prior to any changes in payment.  However, most escrow accounts are managed by an underlying lien and we have no control of the analysis.  Any escrow changes will be within legal reserve requirements and is due to a change in your property taxes and/or insurance premium.
• 
  

What is the best way to contact you?

• Please send all questions or requests to admin@polarismgmt.net