Non-Performing Note - VA Loan

[Earl G.]

I'm a new investor and am working toward my first non-performing note deal, but of course it's not straight forward. The numbers work for me and I'm working through my due diligence, but I won't be speaking with my attorney until tomorrow. Any help on the items below would be greatly appreciated.

Property is in Florida, 1st Position

1. Are there any additional due diligence items associated with a VA Loan originated in 1990?

2. The original Note was lost, but the Collateral File includes an Affidavit for the lost note that seems to create a complete the history. Are there any additional due diligence items I should pursue in this situation?

I'm working on the due diligence items I would consider more typical such as payment history, Title work, BPO, taxes, etc.  

[Dion DePaoli]

Red Flag

VA loan or any loan with 1990 vintage - why doesn't the borrower have equity? (25 year balance should be 30% LTV +/-)

The Soldiers and Saliors Act rectricts foreclose on any 'active' miltary member.  You can not forclose if they are active and that discovery is on you.  (U can run an inquiry)

VA loans in general do not trade down to the street for many reasons including servicing compliance and loss claims against the gurantee. Along with counter-party risk.

You are pushing on the timeline of continuity of contact as Bill mentions.  

In all likelihood this loan is a lemon and you should leave it along.  Statisticaly speaking.  You need to know what your looking for to make sure you don't burn yourself.  

IMO, not a loan to cut your teeth on.