They should have performed a plumbing air pressure test which will give you a little insight on if there are leaks in the system.

I was wondering if anyone could tell me if I buy a 2nd position non performing note that was a charged off loan, do I need to have a collection license to enforce collecting or foreclosure?

You tied up someone's home in a contract, without the ability to perform.  

At the end of 24 months, if they can't perform, you get the property back either way (and the $20K).

Strategy by  buying the non-performing loan through new concept of  using "The carrot and the stick.Improving the Short Sales success rate , sharing the financial gain with owner who traditionally get nothing at closing. this a new concept  of resolution with the bank from the back end in a win-win-win process.

I have another partner with whom I have done multiple deals and who always performs but the relationship has not yet (I believe it will) progressed to the point of the first partner.

A lease for a term of more than one year must be in writing and, at a minimum, contain the names of the parties, a description of the leased property, the amount of the rent, and the term of the lease.Illinois courts have adopted the definition of “assignment” which is:      An assignment of a right is a manifestation of the assignor’s intention to transfer it by virtue of which the assignor’s right to performance by the obligor is extinguished in whole or in part and the assignee acquires a right to such performance.  

While schools can be VERY important if your property is family oriented (3+ bedrooms, large yard, etc), it can be far less important if your house is in a retirement community, is a studio or a 1 bedroom, is a trendy "tiny house", is in a work/live space, is right downtown and close to night-life or is otherwise more geared to those without children or who are "pre-child" or "post-child".I have many friends who are either empty-nesters or who are middle-aged and childless that just love finding funky houses, close to the stuff they think is cool and who never even know where the nearest school is, much less know or care how they perform.

I also guarantee there's companies out there performing financial schemes that's probably not in the best interest of shareholders, but again, I'm not going to just root against them and hope they fail - I just avoid them for my own investments. 

I'm particularly interested in their non-performing asset program.