Purchased a note with no pay history

[Arthur Mayer]

Hey fellow investors,

I recently purchased a note from the FCI Exchange, but come to find out there is no pay history, and FCI Services will not service a NPN without a pay history. I attempted contact the previous note holder who also did not have a pay history with the note.

Is there a way to obtain a pay history for a note or do you know of a NPN servicing company who will service without a pay history?

Thanks in advance,

[Paul Birkett]

Arthur,

Some things to check:

1. Was the loan boarded with FCI? If yes, then there is a pay history somewhere at FCI. Nobody will service a loan without a pay history. It's a licensing problem they won't take on. 

2. What does the borrower's credit report show? Not that the credit report is reliable...but better than nothing. You may find a paid to date there by working back to the last paid date. Essentially you are creating the pay history. By no means ideal or reliable. 

3. Trace the assignment chain to the last owner with a pay history  

4. Worst case....assume they made all their payments and bring them current. 

5. What does your Purchase Agreement say? The seller may have a rep and warrant as to data - very long shot. 

Good luck.