For seller-finance note holders
If you sold a property and carried the paper, you're now the bank, and the bank has to keep books. NoteHarbor is the servicing back office for owner-financed notes, land contracts, and wraps, without a desktop install or a stack of spreadsheets.
Seller financing turns one sale into years of payments to track, interest to report, and dates you can't afford to miss. Do it in a spreadsheet and every recast, extra principal payment, or balloon becomes a manual recalculation you have to get exactly right.
NoteHarbor handles the whole life of a carried note on a penny-accurate engine: the schedule, the payments, the tax forms, and the audit trail, all in one place and always current.
Three of them come up on almost every owner-financed deal. Here's how NoteHarbor takes each one off your plate.
The problem
Tracking payments and balances in a spreadsheet, and re-doing the math by hand every time a buyer pays early or short.
The integer-cents engine builds the full schedule and applies every payment across principal, interest, escrow, fees, and suspense in the order set for the loan. Extra principal shortens the note automatically; a short payment re-projects the remaining schedule from the real balance.
The problem
January 1098 season: pulling a year of interest together for every buyer you carry a note for.
For each note you hold, NoteHarbor tracks mortgage interest received as payments post, generates the 1098 PDF from that real history, bulk-generates them for your whole book, and can auto-email each buyer their form every January.
The problem
Balloon dates that sneak up: a note due in full on a date buried in a contract you signed years ago.
Set the note as a balloon and the schedule ends cleanly at the balloon row. The maturity date is tracked with the rest of the loan, and extensions re-project the schedule instead of forcing you to rebuild it.
Say you sell a rental and carry a $185,000 note at 7% with a five-year balloon. You add it through the loan wizard: principal, rate, term, and the balloon date. The engine generates the full amortization schedule to the cent while you're still typing.
Each month you record the buyer's payment and the waterfall applies it for you; when they send an extra $500 toward principal, the note quietly gets shorter without changing the payment. You share the borrower portal link once, and the buyer can check their balance, payoff quote, and history any time: no login, no app, no calls to you asking “what do I still owe?”
The following January, NoteHarbor already has the year's interest totaled, so the 1098 generates from real numbers and emails itself. And when year five arrives, the balloon is right there on the schedule. It's not a surprise you find out about from the buyer.
Collect for taxes and insurance with running balances and a compliant annual analysis under the 12 CFR 1024.17 cushion cap, with a shortage invoice when the account runs short.
Link a wrap or all-inclusive note to its underlying loans and see the interest spread, a combined amortization view, and net cashflow across the whole structure.
The Tax Tracking tab computes Form 6252 figures (gross-profit %, contract price, and gain recognized per year as principal is actually collected), then exports a CPA packet.
Every payment, edit, and status change is logged with before-and-after values and a required note, so your records hold up years later.
When a buyer falls behind, generate an arrearage statement and configurable demand / notice-of-default letters from the loan's real figures (templates for attorney review).
Professional borrower statements, payment receipts, and printable coupon books, generated from the same ledger you service against.
Yes. Balloon notes get a schedule that ends at the balloon row with the maturity date tracked, and extensions re-project the schedule rather than making you rebuild it. Land contracts and lease-options are supported too, including converting a lease-option to a note when the buyer exercises.
Yes. For each note you hold, NoteHarbor tracks the mortgage interest received across the year as payments are recorded, generates the 1098 PDF from that history, bulk-generates them for your whole book, and can auto-email each buyer their form every January. Tax IDs are encrypted at rest and only decrypted when the form is generated.
No. You share one secure link and the buyer sees their balance, payoff quote, and full payment history with no login, no app, and no password. The signed token in the link is the authentication, and you can regenerate it any time.
Yes. NoteHarbor runs a RESPA-only escrow analysis (12 CFR 1024.17), tracks running escrow balances, aggregates annual taxes across all county tax accounts on the property, and produces a shortage invoice when the account falls short.
Yes. Link the wrap (all-inclusive) note to the underlying loans you still pay, and NoteHarbor shows the interest spread, a combined amortization view, and net cashflow across the whole structure.
Bring an owner-financed note over in minutes and see the engine, the 1098s, and the portal work before you pay. A 30-day free trial, no card, no desktop install.