Charlotte, NC · Member since 2018 · 55 posts · 4 votes
Does anyone have experience in buying severely delinquent NPLs? What are some of the pitfalls?
For example:
Borrower has not paid since 1995. 10-year statue does not start until maturity (2017). Appears no contact has been made, but loan has been sold twice. All files are accounted for, but payment history could be difficult to actually prove, short of either party proving payments.
Investor · Small Town, TX · Member since 2016 · 110 posts · 252 votes
8y
For me, that is not a question I would ask here. Different states have different rules for Statutes of Limitations. I would be asking the attorney that would be handling the file. If he says it is OK and it is a note that you want to deal with, then go for it. If he says it will be hard, don't bother.
Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
8y
To my knowledge, the statute starts the day the borrower went into default, but each state is different. If the borrower is still living in the property, has been keeping it up and paying property taxes then it may be worth pursuing. But personally, if it has been delinquent that long, would likely be too big of a headache to take on especially if your first deal. However, if one could pick it up for say 10 cents on the dollar, could be a gamble willing to take.