Due diligence on note - Posted by Phil

Posted by Thomas K. Standen on September 11, 2010 at 11:17:16:

I have used this form for gathering data needed to evaluate notes, it may be helpful to you.

NOTE BACK UP PACKAGE

Beneficiary __________________________________________________________________________

Street Address _______________________________________________________________________

City ________________________________________ State ______________ Zip Code ___________
Phone: ( _______ ) ________ - _____________

Fax: ( _______ ) ________ - _____________

E-mail Address ____________________________________________ SSN #: _____________________

Trustor/Payor ________________________________________________________________________

Address _____________________________________________________________________________

City ________________________________________ State ______________ Zip Code ___________

Phone: ( _______ ) ________ - _____________

Fax: ( _______ ) ________ - _____________

E-mail Address ____________________________________________ SSN #: _____________________

Note Information

Original Loan Amount $______________ Balance _______________

Interest Rate _______________ Term _______________

Monthly payments _______________ Date 1st pmt _______________

Number pmts made _______________ Number pmts left __________________

Next payment Due _______________ Are the pmts current ?E yes ?E no

Balloon Date _______________________________ Balloon payment $_________________

Position of Note ?E 1st ?E 2nd ?E3rd ?E Other _______________________________________

If this note is Junior to another loan(s)

Notice of delinquency been filed with the Beneficiary of the senior loan ?E yes ?E no

Is there a due on sale on the senior loan ?E yes ?E no

What is the approximate balance on the senior loan(s) $ ________________________

What is the approximate monthly payment on the senior loan(s) $ ________________________

Who keeps track of the payments: ?E Me ?E Loan Servicing Company ?E Title Company ?E Bank

?E Other ______________________________________________________________________________

Location of Original Documents ___________________________________________________________

Note Servicing Center, Inc. ? P.O. Box 77, Midpines, CA. 95345 ? 209-742-5732 ? www.sellerloans.com

Property Information

Property Location ______________________________________________________________________

Selling Price $ ________________________ Down Payment $ ________________________

Sale Date ____________________________ Current Value $ ________________________

Property Type ?E Multi unit residential ?E Single-family residential ?E Commercial ?E Land

CHECK THE ITEMS YOU FEEL ARE NECESSARY TO INCLUDE IN THE BACK UP PACKAGE

?E?n?n?nIntroduction and Summary statement

?E Copy of Note

?E?n?n?nNote Modification

?E?n?n?nSpecial provisions in the note

?E?n?n?nPayment Guarantee

?E?n?n Additional Security

?E?n?n?nPrevious Assignments of Note and Deed of Trust

?E?n?n?nCopy of HUD1 Settlement Sheet from closed escrow (Closing Statement)

?E?n?n Copy of Deed of Trust or other Security Instrument

?E?n?n?nNote History (servicing documents and/or record of payments, etc.)

?E?n?n?nAmortization schedule of remaining balance

?E?n?n?nCredit Report on Trustor/Borrower

?E?n?n?nImpound Account set up

?E?n?n?nVerification of property taxes paid

?E?n?n?nTax service on the property

?E?n?n?nCopy of Insurance Policy on the property

?E Property Profile

?E?n?n?nTitle Insurance policy

?E?n?n?nAssessors Parcel Map

?E?n?n?nCopy of Grant Deed

?E?n?n?nProperty photos

?E?n?n Copy of Property Appraisal

Note Servicing Center, Inc. ? P.O. Box 77, Midpines, CA. 95345 ? 209-742-5732 ? www.sellerloans.com

Due diligence on note - Posted by Phil

Posted by Phil on September 08, 2010 at 22:21:33:

I have an opportunity to purchase a NPN on a 40 unit complex. The current holder has not foreclosed and is trying to work with buyer. There has been very little information disclosed regarding the operations of the property.
Given this unique situation, what should I be asking for in terms of due diligence?

Thanks,