Portfolio closing guide
Direct answer
After a BHPH portfolio sale closes, the seller and buyer reconcile the final account schedule and funding, transfer the required account records, follow the closing documents for customer notices and servicing, and resolve post-closing items such as payments in transit, payoffs, returned payments, title exceptions, and account substitutions.
Confirm the final account schedule and funding
The final schedule should identify every receivable included in the sale and state the balance or other agreed values as of the closing cutoff. Match the schedule to the purchase agreement, settlement statement, and funding confirmation before changing accounts in the DMS.
Keep a separate exception list for accounts removed, substituted, paid off, repossessed, or materially changed after the original valuation tape.
Transfer account records securely
Provide the contracts, titles, payment histories, lien records, customer information, and other documents required by the closing agreement through the approved secure process. Organize documents by the same account identifier used on the final schedule.
- Use a predictable folder and file-naming convention.
- Track missing documents and cure dates.
- Retain evidence of what was delivered and when.
- Limit access to people working on the transaction.
Coordinate the servicing cutoff
The closing documents should define when the buyer becomes entitled to payments and which party handles customer service after the cutoff. Follow the agreed process for required notices, payment instructions, autopay handling, returned payments, disputes, insurance claims, repossessions, and complaints.
Do not improvise customer communications. Use the timing, language, and responsibilities established by the transaction documents and applicable requirements.
Reconcile payments and changes in transit
Payments can arrive between the file cutoff and funding. Keep a daily record of customer payments, reversals, payoffs, repossessions, chargebacks, and balance changes during that period. The parties can then apply the post-closing adjustment method in their agreement.
Update the DMS only after the sale is complete and preserve the reports needed to tie the system entries back to the funded schedule.
Retain the complete transaction file
- Executed purchase and assignment documents
- Final account schedule and exception list
- Settlement statement and funding confirmation
- Document-delivery log
- Required notice records
- DMS sale and accounting reports
- Post-closing reconciliation and cure records
Frequently asked questions
Who collects the next customer payment?
The closing documents and servicing cutoff determine which party is entitled to the payment and who communicates with the customer.
What happens to payments received after the cutoff?
They are handled under the purchase agreement's post-closing or payment-in-transit provisions and should be tracked carefully.
When should the dealer update its DMS?
After closing and funding are confirmed, using the final account schedule and the software's approved sale-of-receivables workflow.
Sources and related resources
Software menus and reports can change. This guide was last checked on September 26, 2026.