Frequently Asked Questions
- What happens when Meracord services an account?
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When Meracord services your account, payors make payments directly to Meracord. We record the payment, subtract any appropriate fees, calculate the changes to the principal and interest and then quickly transfer the payment to the payee. Meracord can also hold original documents for release when the account is paid in full.
In addition, Meracord provides all the features you would expect from a traditional mortgage servicer, such as monthly statements for the payor and payee, online account information, direct deposit and automatic withdrawal, automatic late notices, the ability to make payments over the phone, highly trained customer relations specialists and much more.
Meracord takes all the hassles out of private loan and lease contracts so that payors and payees can spend their time on more important things.
- If I have a question about my account, who do I call: Meracord, or the title/escrow office where the account was setup?
- You should call Meracord directly. Our highly trained customer service department has access to your account information and is ready to assist you in any way they can.
- Does Meracord draw up original documents?
- No. Meracord is strictly a payment servicer. We only begin servicing documents after they are created. We recommend that payors and payees work with the appropriate industry escrow and real estate professionals in their area to create the best documents for both parties.
- How will I know when a new account is setup?
- When your account is set up, you will receive a confirmation letter by mail from Meracord, informing you that the account has been activated. This mailing will also provide you with your account number and personal identification number (PIN), which you can use to access your account online.
- What if we do not want Meracord to hold the original documents?
- No problem. The payee can hold the originals documents if they so choose. Though this is not the highest level of servicing or security, depending on your needs, this may occasionally be the way to go.
- Why should I have Meracord hold original documents?
- Meracord holds original documents securely until the note is paid off. At that time, the documents are released to the appropriate party without conflict.
- How do I access my account online?
- Whenever you are on our website, www.Meracord.com, you will be able to log on to your account. Simply look to the top right of the page and you will see a box asking for your login. The next screen will ask you for your password and then take you to your account home page. If you have forgotten your login information, you can contact our customer service department at 800.473.3898.
- How does Meracord collect their fees?
- We keep it simple. Fees are collected from the appropriate party at the time the payment is processed.
- What does Meracord do to collect late payments?
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Meracord provides an automatic late notice program, which advises the payor and the payee in writing that we did not receive a payment on time. This service is an opt-in feature that either the payor or payee can sign up for. If there is a late charge clause in the loan or lease, it advises you that a late fee has been assessed. This effective method keeps payors making payments on time, and helps payees avoid embarrassing phone calls. There is a $10 charge per late notice that is only charged if a late notice is created and sent to the payor. This fee is paid by the payor.
For payors with serious delinquency problems, we can also send out a notice of the payee’s intent to foreclose, at the payee’s request, which is sent by certified mail to the payor. This notice has proven to be a highly effective means of turning delinquent accounts into current accounts.
- If my note has a late charge clause and it is assessed, does Meracord keep that amount?
- No. All funds relating to the loan or lease belong to the payee. Meracord holds no beneficial interest in the note.
- What if I make changes to the loan or lease?
- No problem. Any modifications, including payment changes, interest rate changes, name changes, and others, can be applied to the servicing conditions by Meracord for a small fee by calling our customer service department.
- Do you report to the IRS?
- Yes. Not only do we provide all customers with an Annual Summary Statement, we also report to the IRS the total amount of interest paid by the buyer at the end of each year. This important function is required by Federal tax law and we eliminate this hassle for the payee by reporting on their behalf. At Meracord, we take care of the hard stuff, so you don’t have to.
- Do you report to the credit bureaus?
- No, Meracord does not currently perform credit reporting. However, we can provide Verification of Mortgage for the buyer, as well as complete payment histories. Our experience has shown that when these documents come from an independent third party like Meracord, they help buyers establish good credit.
- Do you hold funds before you disburse them?
- In nearly all cases, we transfer the payment in good faith to the seller the same day as it is received. At Meracord, we pride ourselves on how fast we distribute funds from a payor to a payee. There are certain situations that may require us to hold check payments until the check clears, but this typically only occurs when large dollar amounts are at stake. In the case of payoffs, if the payoff is not paid with guaranteed funds, we hold payment until the funds clear, or for 10 days, whichever comes first. In such cases, you are always notified.
- What happens if the payor defaults? Who takes care of the foreclosure process?
- Should a payee have to file foreclosure on the real estate property, we advise them to seek legal advice from either an attorney or a foreclosure agency. We accommodate sellers through the process by locking the account, refusing payments, and providing sellers with any necessary documentation, such as payment histories.
- I noticed that Meracord charges a fee for NSFs and returned checks. Who will pay the returned check fee?
- We attempt to recover the fee from the payor. However, if we are unable to collect the fee from the payor, we will ask the payee to pay the fee.
- How long has Meracord been in business?
- Founded in 1980, Meracord has been a recognized leader in seller finance servicing for 30 years.
- Is Meracord insured & bonded?
- Yes, we are.
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