Chasing Collateral - Another Reason its needed as a note investor

[Chris Seveney]

One of the challenges when buying notes is after the sale, having the seller create the transfer documents and getting them to you in a timely manner. Recently I ran into an issue where the collateral documents were taking a long period of time. The asset was also a contract for deed where I was on title to the property. Not long after we bought it the borrower listed it on the market for sale and had it under agreement very quickly. Unfortunately the sale fell through because we had not received the deed into our entity and this created a very unhappy CFD borrower. It all turned out well as the house still sold and we got the documents, but just wanted to share this story with people on why its critical to get documents ASAP and make sure to push the seller and check the loan sale agreement to see how long they have to provide the documentation.