Hazard #1: Not knowing what’s on the title.
Delinquent property taxes and other liens can create obstacles in a note sale transaction. You gotta know if Mr. Kringledingle hasn’t paid his taxes.
These title issues are most common with highly delinquent non-performing loans.
Having an understanding of what’s on title prior to marketing a note for sale can save time and frustration. It also can minimize the risk of being unable to come to terms on the final purchase price at closing.
Stay tuned here for more hazards.