Due diligence 2nd lien note in MA

[Sandra Helena Holtz Ivarsson]

Just came across a note(would be my first one). Believe its a re-performing and I just want to get my feet wet. 

I managed to find out that the taxes has been paid on the property. 

1. How do I find out if the mortgage aka first lien is current?

2. Does Minnesota require you to have a debt collector license?( is there a compiled list which states require a license and which dont?)

Thank you in advance sincerely Sandra a

[Marco Bario]

@Sandra Helena Holtz Ivarsson -

As has been suggested, the borrower's credit report will tell you who the first lien provider is and if it's current. But only if it's reported to bureaus. 

You mentioned you're just starting out so it's possible you aren't able to pull credit reports yet. The note seller might agree to do it for you. 

The balance reported on the credit report may not include a deferred balance if there is one. You could be in for a big surprise. When the loan mod was agreed to (you mention the 2nd is re-performing), hopefully, the investor who owned the loan at that time required the payor to sign a limited power of attorney (LPOA) granting authorization for the senior lien holder to share information with the junior lien holder. If so - what you want is a payoff statement for a complete picture of the loan balance. I'd also negotiate for the note seller to be sure the payor grants you a LPOA going forward.