Buying owner financed notes

[Joshua Andrews]

When buying privately originated mortgage notes (owner financed) what documentation should I be looking for to ensure the loan complies with new lending guidelines?

Interested in hearing feedback from seasoned folks.

Thanks!

- Josh

[Bill Gulley]

@Joshua Andrews

@Joshua Andrews

Do you do conventional loans? Best to go with the same standards for documentation, but such is usually lacking, grossly lacking.

I looked, but I'm having site issues again, there is a list of matters to address in another thread that was posted in the past 2 days, consider that!

If it's owner occupied and was originated after 1-10-14 you better see an originator's seal on the note or you may have a worthless piece of paper!

Verify payment history with an individual holder, you need to see the deposits otherwise that can be fudged, credit is determined as to the deposit date, not a date claimed to be received. If the note was with a servicer you can rely on their accounting.

No appraisal usually, so investigate the sale transaction and valuation as often, the scammer types over value the property.

Specific question? :)