If a 2nd is not on the credit report....

5 Replies

I am new to the note business and I am in the process of bidding(of which I would rather be giving a price but oh well)  on a few notes.   After doing some due diligence on the 5 I have filtered out I notice that one of the most appealing does not show the 2nd anywhere on the credit report. Not charged off or sold or nothing.   What does this mean?

Thanks for your insight.

I don't really know anything about notes, but maybe @Bill Gulley  , I think they're both pretty knowledgeable 

You got me. I don't know. 

My loans don't show up because we don't report fiduciary mortgages to the credit data repositories.

Try Gordon Moss, Bill Tan, and Gerald Lemoine. Bob Estler, although new to notes, is a frequent poster here.

Maybe someone can repost this because these names will not populate accounts in my iPad.

Not being on the credit report just mens it hasn't been reported.  Could be a seller that carried the second and now wants to move on.  

I would pull the title report, you want to make sure that the lien has been recorded.  

Good stuff.. Thank you!

All it means is the second holder is not reporting or that the CR that you got has not been updated if it is reported.

You may want to ask for cancelled checks for the last 12 months if you have contact with the borrower, go by the date it clears, not the date the check is written. If you can't get proof of payment then the second holder will give a verification of mortgage which will be a representation made to you. In that case you need to make sure that holder has assets to pay if they lie to you, that rarely happens with an institutional or regulated lender (errors) but an individual note holder has an interest in the deal if they are being paid off (they want their money) so more due diligence is required. :) 

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