All Forum Posts by: Mike Hartzog

Nice work!  :-)

Hi Gabe - I have not.  Have you had good results with them?

It would be the same as the lienholder name which is referenced on the assignment.  It's generally a format like [IRA custodian name] Custodian, FBO [your name].  Most servicers will send these out for you if you ask them.

Great, thanks Bob.

If you are just partnering up to purchase in bulk, I think a regular multi-member LLC will work if you define in the op agreement how the assets will be distributed after purchase. In other words, purchase the assets, distribute them, and close out the LLC. As I understand it from my discussions on this topic with one of my attorneys, the thing that treads on the securities laws is if you bring people in who are not knowledgeable about notes investing and you end up working the notes in the LLC rather than distributing to the members.

Thanks for the feedback Bob and Joshua.  Unfortunately, that's the one I am having trouble with.  I recently purchased a bulk order of around 60 reports for a pool purchase.  There was some title cleanup to do after the purchase and we ended up releasing a number of liens and assigning others, and in drafting these documents discovered that the information included in the summary was frequently inaccurate.  

Releasing the wrong lien is not a mistake I want to make so I was verifying the instrument numbers, dates, etc against the actual document images, and in doing so found many discrepancies.  Generally, I found that the liens and lien positions were all there in the summary, but the current lien holder, instrument numbers, dates, and assignment chain were frequently inaccurate.  I subsequently discovered that these reports are farmed out to a 3rd party.  Some reports were spot on, and some were not.  I think it is luck of the draw WRT the individual who put the report together.  It's disappointing, because I like the report format and have a good working relationship with the vendor, but I don't think they have the proper quality controls in place.

I am finding that my current supplier of title reports is not doing a good.  I am finding that a significant percentage of reports have discrepancies between the summary information provided and the actual documents recorded on title.  These types of errors render the summary worthless and force me to do the analysis myself.

So, I am looking for qualified recommendations for other suppliers.  I am fairly competent with internet search and have no trouble finding other companies offering the service, but I would rather not proceed on a trial and error basis.  What I am looking for here are qualified recommendations, i.e., if you have used the provider in the past and have found the reports produced to be accurate, I would love to hear about it.

Thanks!  

@Paul Choate 

Great stuff!  That's the best legal non-advice/explanation I have seen yet BP.  Thanks for sharing.  BK is a grey area for many of us.

@Rick H. 

You crack me up man!  Love it when you post.  Always a perfect mix of wisdom and humor...

@Paul Choate 

Thanks for chiming in here Paul.  I am curious on how/why a trustee could claim an interest in a secured debt under CH7.  I am guessing that one scenario might be that the debt Bob has purchased may not be the debtors primary residence, or if it is, there may be substantial equity above the secured debt which could be fair game?

I think you are good to go Bob.  I am not a bankruptcy attorney, so take this at face value, but my understanding is that the discharge refers to discharge of debts.  So now your borrower is no longer personally liable for the debt, but the debt still encumbers the collateral.  You are free to work with the borrower and/or move forward with FCL. 

There are cases where the debtor is required to perform certain actions after discharge and before case closure.  The trustee still has power over the case until the case is closed.