All Forum Posts by: Rafique Karim

Rafique Karim - the notes I acquire are from reputable sellers and hedge funds. If you were not comfortable with the seller you could have an escrow agent hold the funds but it’s not common.
The process goes like this: you make an indicative offer; if accepted the seller provided the soft collateral package and you run title report and confirm property value. Bid may get adjusted after due diligence and when final price is agreed seller sends you a loan sale agreement. You execute loan sale agreement then wire funds. Seller then sends you hard copies of collateral and you record assignment.

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@Chris Mason. I barely know anything about servicing so I will be using a servicing company.

Originally posted by @Chris Mason:

Originally posted by @Rafique Karim:

Similar to purchasing real estate, is there any need to use an escrow service when purchasing mortgage notes?

I'd suggest hiring a RE lawyer local to the real estate (not local to you or the note seller, but the underlying asset - the home) and doing whatever they say. There are a ton of consumer protections, and now you're a mortgage servicer in the most over-regulated era of the mortgage industry in all of human history. I would suggest treading very very carefully, and not trying to skimp on the things that are going to protect you from a judge rendering the entire amount owed void because you did something "predatory."

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Similar to purchasing real estate, is there any need to use an escrow service when purchasing mortgage notes?

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@Linda Hastings @Chris Seveney Thanks for the advice. I'll check those out.

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Thanks. I'll look into those.

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I'm new to notes investment and recently got my first performing note. However, I want to get involved in non-performing notes and looking for good educational resources. Are there good resources/classes that you can recommend?

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@Chris Seveney

Thanks for the insight on the note. We should definitely meet up.

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@Cedric Wilson

It's not through a bank but through an online notes trading platform. I've not done any due diligence so don't have much details. I was curious what the buyers do when when they purchase such notes and the borrower wants a deed in lieu.

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@Chris Seveney

1. It's 1st position lien

2. That's great advice. I've not yet checked on any other liens.

3. So far I've seen online, property value is around $55k but that definitely requires more definite valuation.

4. Property is located in Michigan.

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Hi. I'm learning about buying notes and was curious about non-performing notes. If I buy a note where the borrow is willing to do a deed in lieu of foreclosure, what is involved in that process? How do I profit from it? Do I create a new loan repayment plan or go through a process to sell the property?

I came across a note that has $27,000 unpaid balance and selling for $2000. Got me curious why it would be sold for such low amount.

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All Forum Posts by: Rafique Karim

Rafique Karim has started 3 posts and replied 10 times.

Post: Mortgage Notes Purchase

Post: Mortgage Notes Purchase

Post: Mortgage Notes Purchase

Post: Non-performing notes education

Post: Non-performing notes education

Post: Non-performing notes education

Post: Buying non-performing notes (deed in lieu)

Post: Buying non-performing notes (deed in lieu)

Post: Buying non-performing notes (deed in lieu)

Post: Buying non-performing notes (deed in lieu)