Would you BUY a Non Performing Note without the Closing statement ?

[Michael Morrongiello]

Need a competent Attorney who is well versed and practices include debt collection law, and real estate foreclosures in the State of NC ?

Situation:
Looking at a NON PERFORMING 1st lien on a residential owner occupied SFH property that was sold with Seller Financing over 9 years ago in NC. The Borrowers paid for awhile (sometimes sporadically) then STOPPED paying now almost 3 years ago. The Note was SELF Serviced and collected. The Original Note Holder (sellers) want out...

The Original Note holder claims the closing happen thru an attorneys office  and with a title company involved (with lender title policy issued) but the elder attorney has since closed his practice and has passed away and the title company no longer exists. The Note Holder claims that the ORIGINAL closing settlement statement cannot be found or obtained (thru the deceased attorney; now deceased) and the same for the Loan Title insurance policy (thru the title company  firm that is now no longer in business). 

Would you proceed forward? and what Steps would you take to mitigate RISKS so that you can collect ? 

Michael M. 

[Chris Seveney]

Not having the original closing statement not the end of the world. I assume the lender had the original note and recorded mortgage. Where they are gonna have troubles is by self servicing in North Carolina which courts don’t take lightly https://www.mayerbrown.com/en/insights/publications/2025/10/mortgage-servicing-updates-north-carolina-enacts-new-licensing-requirements-and-adopts-prudential-standards