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Handling payment collections
Old 03-01-2015, 07:36 PM   #1
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Handling payment collections

I inherited some Promissory Notes when my parents died. My dad bought, flipped and owner-financed these properties to people who wouldn't be eligible for conventional financing. As bad as you may think their financial situations must be, I assure you, it's even worse. This has really been an eye-opener for me.

We anticipating moving several hours away when we retire in a couple of years. I'm trying to "my people" used to the idea of not dropping off their payment at our house. I discovered eRent and actually have several using it. They like it, and I love it. I'm paying the $3 to encourage them to use it.

The problem is two Luddites, who both pay via Money Order each month. One of them doesn't even have a checking account because she thinks the bank will steal her money. I make the other one use Money Orders because they've given me so many bounced checks.

I'm toying with the idea of mailing them a bill each month, with a self-addressed stamped envelope. I'm concerned about the hassle & expense of them replacing a lost money order. Are they any other electronic options I'm missing for transferring $$$ without using the postal service? I'm thinking wire transfers are $10-$20 both ways, right?

DH suggested I give them a deposit slip each month and have them just make their payment as a deposit at our bank. That makes me nervous....

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Old 03-01-2015, 07:48 PM   #2
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Check WalMart. Just walk into a local WalMart and talk with someone in their budding financial department. They might have a product for you and your people.

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Old 03-01-2015, 07:53 PM   #3
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Originally Posted by SumDay View Post
DH suggested I give them a deposit slip each month and have them just make their payment as a deposit at our bank. That makes me nervous....
That's the way I paid rent for a townhouse I rented a couple of years ago. It worked for both me and the owner who was a very elderly lady who lived about 3 hours away. I don't know if there could have been any got-ya's. I guess we worked it somewhat on trust, but I always had a deposit receipt with her name and account on it and correspondence backing up our agreement.

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Old 03-01-2015, 07:57 PM   #4
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Deposit slip is a good idea. Open a new separate account solely to receive these deposits.
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Old 03-01-2015, 09:22 PM   #5
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Originally Posted by Daniel J View Post
Deposit slip is a good idea. Open a new separate account solely to receive these deposits.
And sweep the account so there's no money in it. I would also set up the account in a bank other than your main bank so there's no possible connection to your main account(s). Just put enough in a savings account to avoid fees and give them a checking account deposit slip. Sweep the money out of checking into savings regularly and sweep the savings account regularly out of that bank so it never has a significant amount in it.
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Old 03-01-2015, 10:44 PM   #6
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How is giving someone a deposit slip any more risky than writing someone a check (which was common until a few years ago)? In each case, they get your name/account #.

Various family members (including myself) routinely would deposit checks for my M/FIL. If the bank teller is on the ball (and they always were), they would give you a deposit receipt that did not include the balance (that would be private information that I was not to see since I was not the account holder).

There may be other options, but if the deposit slip works for others, I see no safety concerns.

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Old 03-01-2015, 11:10 PM   #7
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I agree on the deposit slip. That's how I'm doing it with DD and SIL. Obviously a bit more reliable than strangers, but I'd do it the same way. As Jerry1 says, sweep the account monthly and you're perfectly safe.

I took a large check to the bank recently and the teller requested my ID before she would deposit it. I told her to make a note on my account. If anyone wants to deposit money into it for any reason, let them. No ID required.

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