Making Payments
Servicing means Virgin Money collects money from the borrower and sends it to the lender. There is a fee for this service ($9 per payment). Depending on the size of your payments, the fee can be hefty. However, you can reduce fees by paying less often - quarterly or semiannually, for example.
All payments are electronic. Virgin Money sets up an ACH payment link to borrower and lender bank accounts so you don’t have to deal with checks.
Credit Reporting
By handling payments, Virgin Money can also report to credit bureaus. This may be important if the borrower needs to build credit. It also gives the borrower an incentive to pay as agreed - their credit will suffer if they don’t.
Credit reporting is optional with the Full Servicing package. If all you want is help with payment processing, you can opt-out of credit reporting.
Exit Strategy
If you decide to stop using Virgin Money to service your family mortgage, you can cancel the service at any time. They will stop handling payments (and reporting the family mortgage to credit bureaus) and stop charging fees.
If you cancel the servicing agreement, the documents you used for your family mortgage are not affected. The lien still exists and your loan agreement is still valid - you just move forward without Virgin Money’s help.
