Purchasing performing and non performing notes.

[Ashley Larrieux]

Good Afternoon Everyone,

I am interested in purchasing notes both perfroming and non performing. To me it seems  to good to be true. My main questions, without sounding to naive, once the note is purchased Do i have a ficuciary duty to the primary loan lender? If not, why aren't many individuals purchasing the notes and flippig the property?

MODERATOR:  THIS IS NOT AN OFFER TO BUY OR SELL NOTES.  NO ADVERTISING IN THIS FORUM.

[Christopher Winkler]

Don't forget to find out the status of the 1st, if they are paying it or not, or if the 1st has filed a notice of default. Also see if they are filing or have filed for bankruptcy.

Also, please correct me if I am wrong, I am under the impression it is possible to pull their credit report as a potential investor. Section 604 (a)(3)(E) & (F) of the Fair Credit Reporting Act allows this for a potential investor:

item subsection “E” says…

Intends to use the information as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation

In addition, subsection “F” says…

Otherwise has a legitimate business need for information in connection with a business transaction that is initiated by the consumer or to review an account to determine whether the consumer continues to meet the terms of the account.

The full document can be found here; http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0111-fair-credit-reporting-act.pdf