Account Servicing

State Title Agency's Account Servicing is a neutral third-party providing a full range of services for the handling of private notes. State Title's Account Servicing handles private notes secured by deeds of trust, agreements of sale, business sale agreements and other agreements of indebtedness.

With the Account Servicing office located in our Kingman branch, State Title is the only company in Mohave and La Paz counties that does not subcontract those accounts outside the company.

For more information, contact Account Servicing, 928-753-6404 or email.

Below are several frequently asked questions and answers regarding account servicing. If you have any additional questions, please feel free to contact our helpful staff.

Frequently Asked Questions

What does the account servicing actually do?
When is account servicing useful?
What does account servicing include?
How are the services executed?
What advantage is there to using account servicing?

Answers to Frequently Asked Questions

What does the account servicing actually do?

Account Servicing facilitates the receipt and disbursement of regularly scheduled payments and reports all interest as required by the Internal Revenue Service.

When is account servicing useful?

Account Servicing is most commonly used when property is sold and the seller carries back the financing. However, they are useful anytime one private party is owed money by another private party.

What does account servicing include?

Our Account Servicing Services Include:

ACCOUNTING SERVICES - We receive, record and disburse payments on an indebtedness. We maintain fully-computerized records of the interest paid, principal balance and reserves, if any. With a secured password, payors and payees may have 24-hour online access to their account reflecting all transactions for the current and prior year.
COLLECTION AND DISBURSEMENT OF PAYMENTS - Funds are disbursed in accordance with the written instructions of the parties. A payment can be directly deposited into the payee's account and/or electronically debited from a payor's account. If there is an underlying loan on the property, funds can be disbursed to that loan if the parties so desire, thereby insuring the buyer/payee that the underlying obligation is paid.
DEPOSITORY FOR DOCUMENTS - The original agreements between the parties are deposited in Account Servicing and held in accordance with instructions from the parties. We also hold the "fulfillment" or "release" documents until the indebtedness is paid in full.
RESERVES FOR TAXES AND INSURANCE - At the request of the parties, we will hold funds in reserve for payment of taxes and insurance.
ADDBACKS FOR TAXES AND INSURANCE - If the parties' agreement states that the payor or the borrower is responsible for payment of taxes and/or insurance, we will make the necessary adjustments to the principal balance upon receipt of notification from the payee.
ANNUAL STATEMENTS - Annual statements summarizing the year's transactions are mailed to each party at the end of each calendar year.
IRS REPORTING - We comply with the interest reporting requirements of the Internal Revenue Service by issuing 1099INTs and 1098s at the end of each calendar year.
QUOTATIONS - If the subject indebtedness is being paid in full or assigned to another party, we will issue a written payoff statement or assignment quotation.
PAYOFFS - When an indebtedness is paid in full, we record the necessary release documents and provide a final accounting to both parties. In the case of "wrap instruments," we will pay off the underlying loan if instructed to do so

How are the services executed?

All services provided under account servicing are performed in accordance with the written instructions of the parties. The information contained in the instructions is derived from the agreement between the parties. The benefits of account servicing are considerable. Since we are trained professionals, our services help free the parties from having concerns about bookkeeping and other technical matters associated with their agreement. We can also answer many of the questions that may arise over the life of an agreement.

What advantage is there to using account servicing?

Generally, we perform the duties that the parties do not have time to perform, do not know how to perform or do not want to perform. And, since we are an escrow agent, we perform these duties as a disinterested third party. Regardless of which escrow company may close a real property contract, State Title's Account Servicing department can service that account. Account servicing is very common. We believe that most people who have been a party to account servicing recognize its value and would want to use one again. We encourage individuals to consider using an account servicing any time the need or opportunity arises.