Four Things To Know When Buying A Loan

The Fine Print - Summer 2017

Have you considered buying a loan from another lender? Maybe the loan is secured by a piece of real estate you would like to own. Or maybe it's just a good investment opportunity. In any case, do you know what you need to look for when evaluating the loan and loan documents to ensure that you will be able to enforce them later? Here are four things that you should consider:

1. Does the seller have the original note? If you later have to enforce the loan through legal proceedings, you will be required to produce the original note and file it with the court before a judgment is awarded (and if bringing a foreclosure lawsuit, you will have to swear to the location of the original note at the very beginning of the lawsuit). Therefore it is critical that you obtain the original note when buying the loan. If the original note has been lost, that is not fatal, but you will need to obtain an affidavit from the seller (or whomever actually lost