Note Due Diligence Checklist buying tapes from banks and hedge fu

Note Due Diligence Checklist buying tapes from banks and hedge fu

Residential Real Estate Broker · casatic, CA · Member since 2011 · 3 posts · 1 vote

Note Due Diligence Checklist needed buying tapes from banks and hedge funds.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y
  • Dion DePaoliPro Member
    Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
    10y

    Considering note due diligence a checklist is not a good idea.  That is an over simplification and misunderstanding of the process and steps.  I don't like it when the actual topic of the questions is a "tape" and not the loan or loans, which are the real assets.  A "tape" is nothing more than a list.  

    All loans will have a security instrument and note.  All security instruments should be of record.  There should be an origination or credit portion of the file which was used to give and make the loan.  There should be a servicing part of the file which contains correspondence, accounting, and interactions.  There may legal events regarding the file which mean we have either bankruptcy or foreclosure issues.  

    Just because we have a common uniform instrument in GSE's documents doesn't mean all loans use those nor does it mean all transaction types warrant those.  Closed end loans are different than open end loans.  Construction loans are different than other loans.  

    Regulation and compliance varies by state, local jurisdiction, transaction, parties, terms and a couple others.  There is no one size fits all.  As such, there are many different paths of due diligence relating to the same.  

    There is a forum here on BP "Tax Liens, Notes, Paper, & Cash Flows Discussion" where there are many note discussions.  The OP could benefit from browsing there.  

  • Residential Real Estate Broker · casatic, CA · Member since 2011 · 3 posts · 1 vote
    10y

    Thank You

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