Tax and Title Considerations

The Note buying due diligence process includes important tax and title considerations.

When buying non-performing loans, it’s particularly important to review the public records in order to identify delinquent taxes and liens against the property.

When borrowers aren’t paying mortgages, they’re often not keeping other obligations such as property taxes and water and sewer bills.

Not good for the Note holder.

Several title reports will dig up the information necessary to make an informed decision—often in preparation for an upcoming foreclosure auction—but the most common report is the Ownership and Encumbrances Report (O&E).

The O&E identifies the last recorded owner; the legal description; the recorded deed of trust or mortgage of a particular address available from the public records; open liens, mortgages, or lis pendens (a written notice that a lawsuit has been filed); judgments attached to the property or the current owner; assessed value of the property; and the property tax information. Generally, it’s all packaged in an easy-to-read format.

The most important thing to remember: do…your…research! Inspect the records so you’re accounting for all tax and title considerations.

Learn more at

Call 844-433-6683 or email to sell your mortgage Note, or request a consultation at



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