Get Indianapolis References!

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If you are considering doing promissory notes in Indianapolis, please do background checks on your Mortgagor.  DO reach out for references!  Do your homework in this market!

@Stacie N. it's always imperative to do a full background check on anyone you're selling a home to whether you're lending to them via a land contract or an actual 1st lien mortgage. We use a residential mortgage loan officer (RMLO) to qualify the borrower just like as if they would if they were borrowing from a conventional bank. The main difference is their credit score. We require them to have at least 3x DTI just like FHA does to ensure we remain in compliance with lending laws. Not only does this protect your rights as a lender to foreclose or evict today, it also is one of the main ways to ensure you can sell the loan in the future if you choose to do so.

Originally posted by @Dennis Weber :

Why do you say this market as opposed to all others?  Are you talking about land contracts or do you have a particular bank in mind?

Hi Dennis,

It seems that there are a few companies in this market who borrow money from investors, in the form of first position notes even, and then do not pay contractors for the work done on the property.  This runs up mechanics liens.  But worse, the money is used by the owner of these companies to stay just one step ahead of collapse.  The money is not allocated where he says it would be, he doesn't pay the mortgages he holds with investors, and forces foreclosures.  It feels like a Ponzi scheme from what I am hearing.