All of This for Just $995.00

When you sell a property and carry back a note for your buyer, loan servicing ensures that the payments, taxes, and reporting are handled correctly and professionally.

Through CarrybackPro, Lulu Capital partners with a professional loan servicing company (“our Servicing Partner”) to manage your note. They act as a neutral third party between you (the seller/lender) and your buyer — collecting payments, managing impounds, tracking balances, and providing statements and tax documents for both sides.

This keeps your carryback smooth, compliant, and completely hands-off for you.

Our Servicing Partner can manage nearly any type of real estate note, including:

• Fixed or adjustable-rate carrybacks

• Interest-only or fully amortized terms

• Construction or short-term loans

• Junior or senior liens

• Single-lender, multi-lender, or pooled notes

There are two available levels of loan servicing. Both protect your interests and ensure your carryback note is managed correctly. See both options below.

1. Full Loan Servicing (Comprehensive Management)

Best for: Seller/lenders who want complete professional oversight of their note — including tax impounds, insurance management, and default handling.

Includes:

• Collecting and processing borrower payments (check, EFT, or automatic ACH)

• Monthly statements for both seller/lender and buyer

• Year-end tax reporting for both parties

• Impound management for property taxes and hazard insurance

• Tracking senior liens or other encumbrances

• Late-payment management and default coordination

• Foreclosure coordination (if ever required)

• Franchise Tax Board (Form 593) withholding and reporting for California installment sales

Pricing:

• Setup Fee: $45 (one-time per loan)

• Monthly Servicing Fee: Retained from the note’s interest — typically 0.5% of the note’s interest rate, with a minimum of $54 per month

  • Example: On an 8.5% note rate, you receive 8.0%, and 0.5% is retained for servicing.

• Impound Account Fee: 0.5% of the loan amount (if applicable)

• Foreclosure Coordination: Included; trustee fees billed separately if ever needed

Distributions: Seller/lenders receive monthly or semi-monthly payments via ACH or check, along with clear emailed or mailed statements.

2. Basic Loan Servicing (Streamlined Option)

Best for: Simple first-position or junior carryback loans where you want straightforward payment collection and reporting.

Includes:

• Payment collection and processing

• Monthly statements for seller/lender and buyer

• Direct deposit (ACH) to seller/lender

• Year-end tax forms for both parties

• Digital communication for speed and simplicity

Pricing:

• Setup Fee: $45 (one-time per loan)

• Monthly Fee:

  • $28/month for first-position loans (term ≥ 3 years)

  • $38/month for junior liens

Note:

Basic servicing does not include impound management, tax or insurance tracking, lien monitoring, or foreclosure coordination. It’s designed for clean, low-maintenance loans.

If a buyer is late, our Servicing Partner may collect and retain the late charge to cover collection costs.

Under Full Servicing, they also send default notices, make collection calls, and prepare the file for foreclosure if necessary — keeping you informed at each step.

Foreclosures are coordinated through C.N.A. Foreclosure Services, Inc., our Servicing Partner’s in-house trustee.

To streamline things, Lulu Capital recommends naming C.N.A. as trustee on your Deed of Trust when your carryback is recorded — avoiding later paperwork and potential closing fees.

Yes — with Full Servicing, an impound account can be set up to collect and pay property taxes and hazard insurance on your behalf.

This ensures these obligations are always current and fully documented, protecting your position as the noteholder.

You’ll receive your distributions either by direct deposit (ACH) or check, according to your preference.

Each month, you’ll receive a clear, itemized statement showing payment activity, balances, and fees.

At year-end, both you and your buyer receive the necessary IRS reporting forms (1098/1099).

To activate servicing, please provide:

1. Signed Promissory Note

2. Signed and conformed copy of the recorded Deed of Trust

3. Contact information for all parties (names, addresses, emails, phone numbers)

4. Completed W-9 forms and ID copies for buyer and seller/lender

5. $45 setup fee (check or ACH)

6. Payment history (if payments have already begun)

7. Title insurance policy showing lien position

8. Fire/hazard insurance policy

9. Impound agreement and funds (if applicable)

10. Senior lien or HOA statements (if applicable)

Lulu Capital will collect these items and coordinate setup directly with our Servicing Partner.

If your property is in California, the state may require Franchise Tax Board (FTB) withholding on the principal portion of each installment payment.

Our Servicing Partner manages this for you — handling the Form 593 filings, withholding payments, and ensuring you receive proper tax credit for each year’s income.

Yes, if you report the full gain from the sale in the year it closes. To do this:

1. File your California tax return and report the entire gain on Schedule D-1 in that same year.

2. Request a withholding release from the FTB by phone, fax, or mail.

3. Wait for written approval from the FTB before ending withholding.

Until approval is received, withholding must continue by law.

Servicing fees are automatically deducted from your monthly note proceeds — there’s no separate billing or invoicing.

Professional servicing:

• Keeps you compliant with state and tax laws

• Creates a neutral, professional buffer between you and your buyer

• Tracks balances, taxes, and insurance accurately

• Handles defaults, impounds, and tax reporting automatically

• Protects your investment and simplifies your bookkeeping

It’s a small monthly cost for major peace of mind and professionalism in your carryback note.

Simply contact Lulu Capital — your CarrybackPro representative will guide you through setup and handle all communication with our Servicing Partner.

Lulu Capital, Inc. Your partner for secure, streamlined seller financing.