Welcome! From a legal POV here in Maryland, I believe the "make or break" detail is your payment ledger. In my opinion, third-party servicing reports provide the transparency needed to avoid due diligence delays. Sellers often struggle when they can't prove a borrower's "skin in the game" with a documented down payment. Glad you're here!
Welcome! From a legal POV here in Maryland, I believe the "make or break" detail is your payment ledger. In my opinion, third-party servicing reports provide the transparency needed to avoid due diligence delays. Sellers often struggle when they can't prove a borrower's "skin in the game" with a documented down payment. Glad you're here!
Here's what we look at. We want to look at the settlement statement, note, mortgage, all assignments, all alonges, & a complete payment history. If you have a valuation of some sort that's current and even an ownership & encumberances report (title report..."O&E") those are also helpful. If you have a property condition report from a licensed sorce, that is also helpful. One thing I really look at that might be odd are all of the collection notes. I need to understand what is happening in the borrowers' lives if I can...particularly if there is delinquency involved. You'll eventually need the complete loan file, but those above would give me a way to know if we want to pursue the buy further. Does that help?