Note Collection Agreement Logo
  • NOTE COLLECTION AGREEMENT

    NOTE COLLECTION AGREEMENT

  • This Note Collection Agreement ("Agreement") is entered into onPick a Date (date) by and between   (Lender) and MOAT NOTE SERVICING.

    WHEREAS, the Lender owns a mortgage note(s) that is/are currently being serviced by MOAT NOTE SERVICING (MNS);

    WHEREAS, Lender understands that Borrowers may fall behind in paying their mortgage obligations;

    WHEREAS, MNS is hereby offering Lender a potential solution for collection of past due notes including going up and through foreclosure;

    WHEREAS, Lender seeks to hire MNS to collect and possible foreclose on their mortgage obligations that have fallen into default, and the Lender has decided to proceed with the collection process with the understanding that such process may ultimately end up in foreclosure on the property securing the mortgage note;

    NOW, THEREFORE, the parties agree as follows:

  • 1. Collection / Foreclosure Process

  • The Lender agrees to proceed with the collection and foreclosure process according to the following options for notice periods:

    In order to properly foreclose, the 90 and 120 day notices must be selected. The 30 day and 60 day letters are optional but may provide for more immediate collection of revenues: Please select the desired number of letters from the list below:

    • 30 Day Notice - Attorney collection / demand letter after Borrower is 30 days behind on the mortgage note.

    • 60 Day Notice - Second attorney collection / demand letter after Borrower is 60 days behind on the mortgage note

    • 90 Day Notice - Third attorney collection / demand letter after Borrower is 90 days behind on the mortgage note. The 90 day notice will satisfy Texas state law informing Borrower that if they do not cure the default within thirty days, the property will be posted for foreclosure.

    • 120 Day Notice (Final) - Attorney Notice of Acceleration on Note and Notice of Trustee's Sale, including Appointment of Substitute Trustee and filing of Notice of Sale in the County

    Each notice will be provided in accordance with the applicable legal and contractual requirements for the jurisdiction of the Property.

  • 2. Fees

  • The following fees will be charged as part of the collection / foreclosure process:

    • 30 Day Notice: $500
    • 60 Day Notice: $500
    • 90 Day Notice: $500
    • 120 Day Notice (Final): $1,000

    These fees cover the administrative, legal, and procedural costs associated with each notice period. The fees are earned at the time the letters are sent out, and you hereby authorize MNS to deduct the fees from the collection of any proceeds on the mortgage notes.

  • 3. Payment Arrangements

  • MNS will not negotiate payment terms with Borrower. Once the collection process has started, MNS is authorized to continue with the collection process up and through foreclosure. Payment arrangements will not be made in connection with the foreclosure process by MNS. MNS will only stop the collection process if the note that is in default is brought fully current. If the amount due under this Agreement is not paid within the terms set forth, the foreclosure process will continue without delay.

    If the Borrower seeks to negotiate with MNS, MNS will refer Borrower directly to Lender. In the event the Lender opts to accept payment arrangements directly with the Borrower, the Lender acknowledges that the attorney fees and outstanding foreclosure fees as stated above will not be waived. The Lender will be responsible for the payment of the outstanding fees regardless of any payment arrangements made directly with the Borrower. Lender authorizes MNS to deduct the attorney fees from any monies collected on the note even if the Lender waives collection of the attorney fees from the Borrower.

     

  • 4. Default and Continuation of Process

  • If the Borrower fails to pay the amounts due, the foreclosure process will continue asoutlined in the relevant notices (30 Day, 60 Day, 90 Day, or 120 Day Notice). TheLender reserves the right to proceed with the foreclosure action without further notice ordelay

  • 5. Miscellaneous

    • Governing Law: This Agreement shall be governed by and construed inaccordance with the laws of the state of Texas and venue to enforce thisAgreement shall lie in exclusively in Bexar County, Texas.
    • Amendment: This Agreement may be amended only in writing and signed by bothparties.
    • Severability: If any provision of this Agreement is found to be invalid orunenforceable, the remainder of the Agreement will remain in full force andeffect

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of thedate first above written.

  • Clear
  •  / /

  • This Agreement outlines the collection foreclosure process and payment terms between the Lender and Moat Note Servicing. It's a formal and enforceable agreement designed to ensure clarity and avoid future disputes. If you need any changes or additions, feel free to ask!

  •  
  • Should be Empty: