Empty credit report on borrower?

[David Fligor]

I am dealing with something of a mystery and would love to get pointed in the right direction or told not to worry about it.

I have placed a bid on a 2nd NPN on a single family house in Connecticut, which was accepted. Before placing the bid, I reviewed a credit report that showed fairly bad credit, but a lengthy history. As part of due diligence, I asked for an updated credit report. The new report shows zeros for everything; not enough history to track. As if the borrower vanished. SSN on the new report and the old report match.

This is a 2nd NPN, and appears to have plenty of equity covering the first and the second, assuming the original information about UPB on the senior loan (from the original credit report and from the seller's information) and this junior loan is correct. FMV conservatively $225k, senior note UPB $135k, the 2nd lien note I am buying UPB $19k with about $10k of arrears. The ProTitle current owner report shows clearly that neither lien has been released. All taxes are current, no bankruptcy, and the house is not being foreclosed on. Therefore, even though this is a 2nd, I was more focused on the collateral than on the borrower's credit.

Any ideas on why a credit report on the same name and SSN would go from a lengthy history to a bunch of zeros? Should I close on the note anyway given that there is plenty of equity and starting foreclosure will either get the borrower to wake up or else will result in me receiving the full UPB plus interest, etc.? Thanks.