- Counties
- Lubbock, Lynn, Hockley, Crosby
- County seats
- Lubbock, Tahoka, Levelland, Crosbyton
- Metro population
- About 325,000
Cotton, oil and a university
Lubbock is the commercial center of the South Plains, a region built on cotton, cattle and oil, with Texas Tech as the city's largest employer. Private notes here split three ways: rental houses near campus, newer subdivision homes on the south and west edges of town, and farm and ranch land in Lynn, Hockley and Crosby counties.
Notes on campus-area rentals
Houses near Texas Tech are usually bought by investors, not owner-occupants. When the buyer is purchasing a rental for business purposes, the loan generally falls outside the federal consumer rules that apply to owner-occupied homes, including the ability-to-repay requirements. That simplifies some of the paperwork but puts more weight on the lender's own review of the buyer. Whether a particular loan is business-purpose depends on the facts and the documents, so have your attorney confirm the classification at origination.
From a servicing standpoint, these notes are straightforward: regular payments, an annual 1098, and, if escrowed, tax and insurance on a property the borrower does not live in.
Tax escrow on town and farm parcels
Effective rates inside Lubbock County generally run from about 2.0 to 2.4 percent of market value, with Lubbock ISD the largest piece of most bills. Outside the city, a lot of cropland qualifies for 1-d-1 agricultural valuation and is taxed on productivity value, well below what the land would sell for. We escrow from the actual bill and check the valuation status every year, since a lapse would raise the next bill sharply.
State sale rules
For reference, Tex. Property Code §51.002 sets the first Tuesday of the month as sale day in every county. Lubbock County holds sales at its courthouse on Broadway, and Lynn, Hockley and Crosby counties use their own courthouses. Upcoming dates are on the sale calendar. Default and foreclosure support is available as a separate service on request. Ask us for a quote.
Lubbock questions
Can you service a note on a rental near Texas Tech?
Yes, as long as the loan documents are in order. Rental and investor notes are serviced on the same rate card as owner-occupied notes.
What about a note on irrigated or dryland farm ground?
That is routine. The escrow is based on the agricultural valuation bill, and we review the classification at each annual analysis.
Is a Lubbock note priced any differently?
No. Setup is $150, and monthly servicing is $35 per note, or $40 with escrow, in every Texas county. See pricing.
This page is general information about servicing notes in the Lubbock area, not legal advice. Loan classification, tax treatment and foreclosure procedure depend on the specific loan and current law, so consult a Texas real estate attorney before acting. Riverstone Note Servicing, LLC is a Texas-licensed mortgage servicer based in San Antonio.
