Non Performing Loans - Due Diligence?

[Kevin Hoodwin]

Howdy y'all,

I'm about to purchase a non performing loan on Paperstac. I've analyzed the loan and the numbers check out to my liking.

I was curious what are some of your processes for due diligence.  Is there a set time for due diligence? What documents do you request? If you can't view the property, do you inspect it somehow? And anything else you may be able to share about your process?

I appreciate any help y'all can provide to the community.

[Jamie Bateman]

I'm not sure I'd be buying a non-performer without having my due diligence process already in place. Among other things, you should be pulling a title report and ordering a BPO/appraisal and/or some sort of exterior inspection. Check Pacer for BK. Ask the seller to upload the pay history and servicing comments. Again, though, I would have my DD process in place first. You can always tweak this process as you grow but you should have a thorough checklist in place before you agree to buy a note IMO. Time-frame is usually 1-3 weeks after your offer is accepted.