Vetting a Note

First, you want to make sure they have all the physical collateral. If it’s a first mortgage, you want to get the title to check for liens, the seller should provide you with a credit report, and you need to do a BPO, and make sure you have reps and warrants in your contract. The same applies to second mortgages.

Most people who buy second mortgages triangulate the value from online sources.

If it all checks out, you make the acquisition. If you don’t know the seller, you can do an escrow trade. At paperstac.com, you can review notes, buy notes, and put money in escrow.

Vet the deal by the seller – find out why they’re selling the asset, do due diligence on the property and the borrower. You can find out whether the borrower has the ability to pay by looking at the credit report.

Foreclosure brings everything to the table. If someone stops paying their mortgage and there’s no legal process or no one has reached out, they will continue to live for free until they receive a demand letter.

nngcapitalfund.com

#bpo #reps #warrant #value #mortgage