- April 16, 2020
- Posted by: august19
- Category: Podcast
Many of us just can’t afford to make any mistakes here in the note space for the reason that it can be costly. While we can’t be perfect in our investing journey, it helps to know some of the few things beforehand so we can avoid them. Chris Seveney flies solo in this episode to share with us a collateral review of a note. Aiming to educate people from making costly mistakes, he takes us across the process of doing a collateral review, covering important details that you should avoid missing out. Presenting real-life scenarios, Chris also shares some case studies that showcase an area that needs to be thoroughly checked. He then lays down the steps to follow and, recalling from her own experiences, gives away the lessons he learned on how to review title reports and collaterals properly.
Listen to the podcast here:
How To Do A Collateral Review Of A Note
Note Versus Mortgage Or Deed Of Trust
We’re going to be doing a collateral review of a note. This is not going to be the entire due diligence process. These are some of the insights of the note and mortgage. I’m managing a portfolio of over 200 active notes and continuing to grow. We are still in buying mode looking forward to the distressed sellers of assets who are looking for liquidity. A little bit of background about me. I’ve got a Civil Engineering degree and wrapping up a Master’s in Finance. I work full-time in real estate and for a Washington DC-based developer. That’s my full-time gig where I oversee their development, construction and CapEx projects that they need to be done and in any new projects that we’ve got going on. That’s a little bit of background about what I do in my free time besides notes and when I’m with my family.
One thing most of you don’t know about me is don’t ever join the Polar Bear Club. It’s not that fun. What the Polar Bear Club is, on New Year’s Day, you jump in the ocean somewhere. For me, it was in Newport, Rhode Island back in 1999. It’s not recommended by any way, shape or form. That’s what happens when you’re young and dumb. My overall goal with this presentation and the show itself is trying to educate a lot of people in the note space from making costly mistakes. We try and do that at no cost to everybody. There are lots of trainings out there where people are charging for everything left and right. We try and provide everything to everyone free-based, share our experiences and our stories, having the best experiences and stories come with buying, and having an active portfolio.
When those get transferred or sold, those are assigned. That right to use that collateral gets assigned and those get recorded along with the actual mortgage or deed of trust. That’s when you order a title report on what you’re looking at the chain on. You’ve got to make sure when you’re looking at the deeds, you’re looking at both chains coming down the pipeline. Does that make sense to everyone? I want to make sure people understand that because there is a big difference with each one and you need both components. We’ll talk about Lost Note Affidavits and things like that.
The Collateral Package
Now that you know what a mortgage and note is, the next thing I wanted to talk about is you hear the phrase, “Get tossed around, I’m getting a collateral package and I’m getting a soft package,” which is an emailed version of the documents.
This is what you get after you bid on an asset and get it under the agreement, they’ll send you what is called the collateral. I put together a list of some of the common things that included within a collateral package. It can vary depending on the number of items that are in there because some collateral files are strictly these documents. Others have every demand letter. I’ll show you an example of somehow deep these files can get. Typically, what is going to be in there is the note itself. The mortgage and deed of trust, the assignments which are the assignments of the mortgage or deed of trust. The path to where whoever owns it now and then the allonges, which there may not be allonges if the note is endorsed blank. We’ll talk about title policy. You want to see if there is a title policy on the loan if it was generated by a major institution, there would be title insurance on it, but sometimes there isn’t. It is not the end of the world if there is no title policy.
Sometimes you’ll see the borrower application package when they originally applied, which is the 1003 form, a mortgage application and that could be in there. There’ll be modifications, forbearance or any other agreements. These were important to look at because when you were reviewing the tape, you’ll look at the note and you got to make sure that somewhere it matches because you may have a note that was at $800 a month and then the tape says $300. Make sure you’re not thinking it’s $800 because there’s forbearance or modification in there. If there isn’t and the tape doesn’t show that information, you definitely want to ask that question. Sometimes you’ll get the credit report in the appraisal. If you think of it, if you’ve ever bought a house, all that paperwork you fill out, everything get at the closing table, that’s what’s in these packages. As an example here is a collateral package. It included demand letters and every correspondence, that is in there and it makes these things super thick.
Something that to look for but sometimes they’re very thin. They can vary in thicknesses where I’ve got some collateral packages that are three inches thick and some that are a half-inch thick. That’s the collateral package. It’s what you get. I start looking through that early on before I order an O&E report. It’s important to do that because there are a few things that you’ll want to confirm as part of it. You can check online. I use DataTree to see who the current owner of the property is and make sure that it matches whoever is with the note. If it doesn’t, that’s a red flag. You may find out that properties may have sold the tax sale or something may have happened and saved you that expense from ordering the O&E report that’s out there. That’s one thing that we’ll talk about the collateral. A lot of times, what people do is once they get the collateral package, they will order a title report. A lot of people use ProTitle.
You can use a nationwide title company or you can use anybody that can provide this information. A lot of the common questions that get asked on a title report is, “What do I order?” A single or Two-Owner Report. I will tell you to order a two-owner report, which goes back to history so you can see things that may have occurred or issues. On a single-owner report, they may not show up. I have had that in the past and that’s a lesson learned. When you order, it’s an extra $45 or whatever it is. You want to order two O&Es. Who do I order it from? You can order it from ProTitle or on nationwide title companies as well that you can order these from. Dickie Baldwin of Baldwin Advisory Group, they can get title reports for you, so take your pick. Make sure you read the contracts with each one because some of them may not guarantee the information on there, which can be problematic if there is an issue down the line.
The other question is a lot of people will send this information to an attorney to review. What do you send the attorney for review? We’re going to talk about that because that’s an in-depth process that I want to talk to people about because I see people complain about attorneys a lot. In this instance, I’ve seen a lot of complaints about this and the challenge is people aren’t sending them the proper information. For example, you send a title report that shows the borrower’s name and a ProTitle report. The information could be a note on a different property whereas it was 200 Main Street but it was a typo on the original documents and the APN number was for 220. I’ve had that happen before and they ordered, everything looks good and then you realize it’s not even the borrower, nothing that checked. When the attorney says, “Everything is clean,” later on, you go to foreclose and then realize this came up and it can lead to some problems down the line.
With that, my whole focus was I want to roll into some case studies for people to show people some of the things or when I get them the information or I send it out to have it done. One I’m going to pop up, I call this Duncan. When I get the collateral file, you jot down the chain. When I talk to people as, “What is the chain?” From this chain, it was originated through immerse loan over to Granite. Granite give it to Alliance, Alliance to SC and then SC to Kirkland. Everything matches because at each tail, the predecessor and successor of each one lines up. On the allonges, they did issue allonges on this one which was followed that same precedent. This is a nice clean one. I keep everything filed and Orion does this. They list all allonges and the assignments and if you log in, you can see that chain as well.
It’s very easy when you look at it this way to see if there are any hiccups or any breaks in that chain. Breaks in that chain can be problematic and can cause you to go need to get some type of gap assignment which depending on who the seller is, if they’re still around, it could be problematic from that standpoint. It’s something to be cognizant of. This one was very cut and dry. For people who haven’t seen an O&E report, here you’ve got the property ownership, the address, the APN, and the borrower’s name. This was an early one where I only did the current owner. I should have done a two owner. Fortunately, it didn’t cost me on this one. When it was assigned vesting is when one ownership to the next. The big thing to look at here is open mortgages. You want to see the mortgage here. Buying is on there. Several things you want to look at it for is one, are you in first position? I’ve seen ones where you’re not in first position.When checking collaterals, have an attorney review all the data. Click To Tweet
Secondly, is there a second on the property? The reason why it’s important to look for seconds or other types is if you ever do a deed in lieu and take that property back, you can but you would have to pay off that other loan, so be careful. Here is that chain that we talked about that I had mapped that had gone through. You can see that process that I had talked about. The other thing you’ll see on here is a bunch of liens against the borrower and understanding which ones stick and don’t. Something you definitely want to talk to your attorney about. They’ll show taxes and value. What they’ll do is they provide all the documentation, go through all the documents in your title reports. The reason why is sometimes there might be something stuck in there that is not picked up on the cover page. I’ve had some where there was a $10,000 lien on the property that was not showing up on the cover page that was in there.
This is clean. This is nice and pretty. The next one I want to show is one that’s not so clean. This is one that was acquired and went through everything when I got the original information. I had Bank of America. When I got the collateral package and this one we’re going to call Flint. It’s in my Flint asset. I get the collateral package. Everything looked good because I had Bank of America, I had the note, they assigned it to Nationstar who assigned it to Strategic and that’s who I was buying it from. The note was there, the assignments were there. Everything was in good condition. It looked good from a collateral perspective. I only did a current owner here. You can see this was back in 2017. When you scroll through, there’s this note down here and it could be easily missed. It says, “Note deeds recorded out of order.” What that means is home financial recorded the borrower before they recorded the deed into their entity. It got recorded backwards.
That’s a problem because they didn’t have the authority to assign or sell it to the borrower until their deed was recorded. They’re recorded the same date but they were out of order. Fortunately on this one, there was a title insurance policy but we had to do some digging because it wasn’t in the file. Here’s a little secret I’m going to show people how to find a title insurance policy. When I went and looked at the mortgage, the first thing is on the first page of the mortgage, you’ll see who to return to after recording. That’s a title company and if it is, then that’s who would have gotten the title policy. That’s the first place you can look. On the flip side, they do so many closing. Sometimes it’s difficult. This was by Bank of America, so good luck getting them. This was from 2007. You can only imagine a needle in a haystack on this thing. Notice this number 23788 written several places on the mortgage and I was curious what that was.
I was talking to a title company. Their comment was they write the title policy number on the mortgage and when I scroll through this, there is an exhibit A. There was a file number, which had that 3788 number on it. When I reached out to the title company, I said, “Would you have any number?” I said, “I’ve got this number that doesn’t match the instrument net number.” Low and behold, that was the title policy. This one, what they had to do is they had to fix the title policy because they were recorded out of order and this was a property that wasn’t a foreclosure. That was something that did take time, but it did get resolved. Another way to get to tell if there is a title policy on some type of loan is a type of deed. If it’s a warranty deed, 99.9% of the time, there is a title policy on there. If there isn’t, shame on the seller because they are warranting it against defects. If there’s something wrong, someone could go after them, that’s why you have title insurance.
On quick claim deeds, you’re never going to see a title insurance. It’s not bad but it’s something that you want to get reviewed and you could even have a title company and add potentially something later on down the line. That’s another key component there, where I had to deal with the title insurance on that one. When I got the collateral, everything looked good. I didn’t go through the history to see the deeds. That’s one area where something could go awry is when it’s recorded on the public record side of things. The next example I’m going to show you is a property in Indianapolis. When I got the collateral package, I noticed the one from MERS to US Bank and then from Bank of America to Nationstar. It was not in order and then later on when you looked at it, there was a corrective assignment. What happened was one of them forgot to record it. They had to do a correction. What the correction does is sneaks it back in to the middle space where, “We’ve got it corrected, where US bank didn’t give it the Bank of America and then Back of American to Nationstar and down the line.” One thing I wanted to mention too on the allonges because I get this question asked a lot. Sometimes there are allonges and there’s not.
The best way thing to understand what that is to check the note. If the note is endorsed to blank then typically allonges are not issued. Think of it in another way. If somebody gave you a signed blank check, that’s the note. Whoever is in possession of it can do what they want. Think of a Powerball ticket. If you’ve got a Powerball ticket and on the back, it’s not signed by who owns it. If I lose it, whoever has that has possession of that note. It might not be backed by anything if the assignment chain isn’t correct, but some people get little razzled because there is no allonge. In this one, the note was endorsed to Nationstar because that was their policy and they ended up issuing the allonge. Sometimes I think they’re confused. It’s like, “I’m missing this or that.” Check on the note as well. That’s a lesson learned. The last case study I want to show you before I go through some steps in some other things to talk about.
This is an interesting one. I left a lot of stuff out because this one is still a pending l case. I have the allonge and assignments. I didn’t put the assignment because there’s too much information on there to try and wideout. The assignment was the same where this entity assigned it to another entity. The chain was clean as a whistle so I thought but what I didn’t know at that time, this was a lesson learned for me. This is the stuff that honestly, I don’t know anybody who teaches you this. This is an, “oops it happens,” and you learn. The title bias individual is an attorney-in-fact. If there’s an attorney-in-fact, there needs to be a recorded power of attorney. This one even goes a little deeper because I’m like, “I’ve got this power of attorney.” I popped it up on the screen and I’ve got this but there are two issues with it. One is it wasn’t recorded in that county. Secondly is the allonge and assignment were dated in 2013.
This only went through 2011. This was something that I will tell you I missed, the original attorney missed, the title company missed or whoever I ordered the O&E report. All of them missed it. If you’re having somebody review it is if you want to get a title policy on it, they would have picked us up. Certain ones may still warrant over it. That’s the other thing too. Title companies are very weird. Some are much less loose restrictions than others but from a foreclosure perspective, the other attorney picked this up and I was like, “Time out. You don’t have a proper assignment because this person wasn’t authorized to sign.” Technically, the people that preview for you still owns this because they never properly assigned it. At the end of the day, it’s a stall tactic because I can reach out and get this information. It was something that they used again to try and stall as much as possible.
One thing to look at is, who’s signing these things? Just because there’s a signature, you want to make sure if somebody is authorized. When you sell an REO, I get asked this all the time, “Show me the articles of incorporation that you’re in good standing as well as your operating agreement.” It shows that I’m authorized to sign. I get asked that on every property that I take back and sell. I’m going to show this one on contract for deed as well because this is the stuff that nobody ever sees coming but if you use a power of attorney, you want to make sure who is signing. If you use a company like Katie-K or MetaSource or somebody like that, make sure you have a copy of your agreement where they have the authority or power of attorney to sign for you on this information as well. Those were some case studies I wanted to go through.
Steps To Follow When Reviewing
I want to talk about the steps to follow or things that you should be doing when reviewing this information. The first thing is when you get a note under an agreement, you’ll receive that soft collateral. That’s the email version. I was going to go through this at the beginning and I decided let me do it at the end because it gives a better understanding of why you want to follow this after you see some of these examples. You want to break out and break down the chain. It’s good to understand that I missed that. Before I own an O&E report, that’s a lot of things I’ll do. I’ll even reach out to the seller before I order it and say, “Do you have this or whatnot information?” Some people do get lost. We don’t have the original of the assignment, but if it’s recorded then you should be fine. If the original was lost after it was recorded for an assignment of mortgage, it shouldn’t be the end of the world.
The next thing you want to do is go online, confirm with the current owner if it’s listed on the property. That’s a very generic and basic thing you want to follow. Make sure that is taken care of because it could have sold a tax sale. Sometimes when you’re reviewing these assets, especially if somebody load the whole ones, which by a lot of them. I’ll double-check to make sure what is on there and what wasn’t that it’s still a current owner. Next, you want to confirm the way this assignment allonging ends with the current seller. This is how you know if it’s a broker. If it shows the last one as Portfolio Associates, Harbor or Window Rock, whoever it may be that had a note and you’re buying this from me, as an example. You’ll be like, “Are you brokering this or do you own this because I don’t see the assignment to you that says you own it?” When you pull an O&E report, it might not show the latest because it’s still possibly in the process being recorded because recordings can take a long period of time. You’ll want to confirm whoever you’re having that from, that the assignment and the allonge ends with them.
Once you do that, your order the two owner title report from your title company whether it’s a nationwide one, ProTitle, Baldwin Advisory Group, whoever it is from that standpoint. Before you order the title report, make sure the data matches. As I talked about it, I had a property in Texas where every document had the wrong property address on it. This was early on in my career and I took it. Before I reviewed the collateral and even the tape, everything was wrong. I said, “Order me a title report for this parcel.” I saw that it came back and it was a different owner. The seller was like, “That’s impossible. The person paid literally two months ago.” This says it was transferred six years ago. Lo and behold, everything said 200 Main Street on it and the actual property is 220 Main Street. One of the lessons learned is when I sent information to ProTitle, I include the borrower’s name, the address, the APN number, the type of report I want to order, who I’m acquiring this from, and what am I doing? Am I buying the property? Am I buying a note?
I let them know all that information. If they pull it up and say, “Your APN number doesn’t match your address.” They’ll red flag that and ask. It’s important to send that to whoever you’re ordering your report from. The one thing is once you get all this data, a lot of people have an attorney review it. If you’re going to have an attorney review which I highly recommend especially if you’re starting out, make sure you list who the borrower is and who you’re acquiring it from. When you sent him the information, send them the O&E report but also send him the note in the allonges as well. A reminder, let’s step back, the note and the allonges are not recorded. If you send them the ProTitle report, they can come back and say, “The first one I showed you where everything looked clean.” Let’s say I didn’t have the note or anything or I was missing information. Depending on the state, like in Maine, it doesn’t allow for lost notes affidavits, you can be out of luck.The more information you can provide to your attorney, the better off you will be. Click To Tweet
You’ve got to make sure you send them that. The other thing is when you send it to them, don’t send them the 300-page PDF that you got either because they’re not going to go through everything and they’re going to miss it. Reminder, it’s up to you, breakout the things you find important and send it to them. If there are questions that you have, put the questions in there as well. I’ve had many loans that I’ve sent to attorneys and said, “Here’s the status of this one.” Whether it be when their last pay date was, it was a question with the assignment or didn’t understand something, put those questions down in your email when you send this to them. Don’t send them an email saying, “I want a review of this.” The question is going to be, “Review what?” I can review, “Yeah, it looks like everything looks good.” If they don’t know who you’re buying it from or who the borrower is supposed to be or which loan is you should buying. What if there’s three notes on the property and you’re the second investor? You send it to the attorney, he may think are you the first or the second? “Who are you?”
That’s important that you have to explain that to the attorney. The more information you can provide to them, the better off absolutely will be in regards to making sure they get a proper review. Some lessons learned that I’ve had through this. Property address versus the parcel number, always include the parcel number because it can bite you. It has cost me $100. Making sure the power of attorney is recorded, seeing that and that’s caused a significant delay in legal because of this. Another is unrecorded assignments. I’ve had a bunch of assignments that I’ll answer the questions at the end. I’m going to use Harbor because that’s what popped in my head. If you’re buying it from them but you don’t see it assigned to them, say, “What’s going on with this?” If it’s unrecorded in the file, ask them if they’re going to record it prior or if they’re not, you can record it, but they’re going to give you the money back.
It’s not a lot of money but if you’re buying 100 of them and none of them are recorded then that adds up out-of-order dates. Here’s one that, those deeds were recorded in different orders. Here’s a little tidbit for people if you are converting a land contract, creating a note and mortgage, and you’re doing it yourself. A lot of times what people do is once I get the note mortgage back, I’ll sign the deed. If you do that and when you go to get it notarized, your mortgage and deed of trust get recorded is dated before the deed to that person. It can’t be that way. The deed has to be in front of the mortgage. A lot of these counties will look at it and be like, “This person can’t sign a mortgage or deed of trust if it’s after the date of the deed.” Lesson learned, I had that the first go-around when I did one of my first conversions. When you create those documents, create the deed. You’re not recording it, you’re getting it executed.
When they sign their documents because you put and there is a date in the corners on these documents, you want to make sure that the deed comes first. Another lesson learned is ordering one owner reports. It doesn’t go back. I’ve got an asset that’s got a title issue from many moons ago where the borrower passed away and then the children sold it to somebody. There’s nowhere we can find any of the information that shows, where was the will, what was the probate? There was no probate involved. The chain has been broken. We’re trying to go back and fix it. It would require a quiet title. It can be done but it’s going to cost $2,500. Fortunately, for this one, at the end of the day, we’re able to get information from one of the people who sold it because they still live nearby. We got that information that we needed so we didn’t have to go to that process. This showed up late in the game for us because, at that time, I had only ordered a one owner because when I was taught early on, the person that taught me said, “You only need single owner reports.” That’s furthest from the truth.
Another lesson learned, not thoroughly reviewing title report and collateral. That little note at the bottom of that one that said Deeds Record Out-of-Order. It wasn’t bold nor easy to see. It could have easily been missed. A lot of times, when you go through check because there could be information in the back of your report that isn’t on the cover sheet. Don’t leave you the cover sheet. Go through the entire report. You should spend going through this at least fifteen minutes, free time flipping through it going through each page. I use a software called Bluebeam. What I can do when I get collateral or other information, I can come to this page and say this was pages 10 to 12. I can export the extract pages and take plug pages. I can say here, custom 10 to 12, and then save it as a file. It was an assignment from BOA to Nationstar. That way in this main file stays the same, I’m slicing up the pieces to create that chain which I find convenient.
If you have any, whether it’s Adobe or something that can do that versus having to print all these things out, you may have to print it out if it gets too confusing. I do everything remotely or online on a screen. The last item is foreclosure, bankruptcy and taxes in other liens. You need to understand what is and isn’t being checked. In Pennsylvania, is that the county and the school taxes? In Indiana, is it the water and sewer liens being checked as well? Did anybody check to see if there was an ongoing bankruptcy case? If you get the loan application package in the file, check if there will be borrower information that you can go onto pacer and search to see, have they filed bankruptcy and how many times? Some people may have a unique name, like my name Chris Seveney. If that was in PACER, there’s one other Chris Seveney I know. If there ever was one, there wouldn’t be 100 of them pop up. When you’re dealing with John Williams in Indiana and even in the Northern District of Indiana, there could be 400 cases. How do you know? You can do searches by certain information, Social Security numbers that allow you to do that search.
If the 1003 application or credit report is not in there, ask the seller, “Can I have this information? I want to check for bankruptcy.” Something that you’d want to look at as part of this package to see what is going on because they may have filed a Chapter 7 and relinquish the property. You go through a collateral review and everything looks good, but they filed Chapter 7, so it’s your house. I talked about the taxes. It’s important to understand those to see how much is out there and other municipal liens. The last is the foreclosure. What’s important about this is in certain states, if a lender took action against a borrower ten years ago to foreclose and never did anything with it, some states have a statute of limitations that I can kick in and your note is not worth anything. It may be past the statute of limitations. I shouldn’t say it’s not worth anything. It might be that you don’t have the right to collect.
It could have other implications which I’m not the attorney, you need to talk to an attorney on. I believe in Illinois that is the case, possibly Ohio. Some of these judicial states do have a statute of limitations if you go to seek a foreclosure and don’t follow through with it. If you issue a modification or something happens like that, that ends it and can restart it. If it was somebody hasn’t been paying and it was left in Lala Land, that could be problematic. Those are some of the things that you should check. If you have, that credit report application, if you send it to an attorney, you can also ask them to check to see if there are any pending cases. One thing that popped in my head that I will share with you that assisted and this was I had an asset that the collateral file is lost. There was nothing. I was able to gather enough information and find a former foreclosure case from 2011 that they worked out a modification at that time.
The attorney had everything digitally including a copy of the note, assignments and had title report done, everything. I was able to obtain a copy of that and recreate the file because the last note affidavit is okay in this jurisdiction. We had a copy of the note. We did get last note affidavit and then it opened up the file be clean where we could go after the foreclosure on it from that instance. Sometimes all may not be lost but 99.9% of the time, if people are like, “I don’t have any collateral.” I would tell people to run. This was one instance where as part of a large pool that was purchased so it was thrown in there. If you’re missing the entire collateral file or there’s nothing there, I recommend to don’t walk because you’re taking on some big headaches especially if you’re a new investor. That’s what I wanted to cover.
A Question From An Audience
Thank you for reading this blog. If you need more great information, make sure to check out the show, as well as on 7EInvestments. I have a lot of freebies for people on there as well as other investment opportunities for accredited investors with some of the funds that we’ve been running and been doing very well in over this time. With that, I will take some questions from people. “Are the slides available after a session?” Yes. “Does the attorney need to be in the same state as the property?” Their attorney should be licensed in the same state as the property. There are two ways to look at it. Sometimes I’ll use MetaSource to do an initial collateral review to see if everything is in order. That’s one component. If there are things that are way out of whack, then it’s definitely attorney review but for the most part, my attorney reviews consist more of a quick phone call if everything is in mind or in order.
You want the attorney licensed in that state to answer your question. If there is a large chain of assignments and some of the early ones are recorded out of order, ideally we would reach out to the companies and get fresh assignments, get them recorded. If those companies no longer exist and hard to find or reach, what can we do the correct the collateral? That’s always a challenge. For example, a company Stewardship Fund who had a lot of notes in CFDs decade ago and they close shop because they’re running a Ponzi scheme out of Texas. They were shifting assets from one fund to the other and stealing money. This is what they reported or what the authorities alleged. They were convicted. Someone went to jail and it had a receivership shut down. It’s impossible to get any paperwork from if that is missing. The truth of reality is if it’s missing during due diligence, you put it on the seller. Let’s be honest, stuff gets missed. I’ve rushed things in the past and realized something was missing. It’s like, “I’ve got to go hunt this down and find it.”If something is missing in the review during due diligence, you put it on the seller. Click To Tweet
Recommendations I have and this is one of the reasons why I enjoy using a like a Katie-K, KC Wilson or a MetaSource/Orion. It’s a small business and they have the connections to hunt these people down to find them for this type of paperwork or they may point you in the right direction. It can be very problematic if the assignments are missing from trying to get a foreclosure or anything in those. What I possibly could recommend, and this is all through an attorney. What I’ve done in the past with clouded paperwork, two things you could do, you could still do quiet title. Talk to an attorney because what they do is turn around and show them the chain. They turn around technical and sue that company and then the company that bought it from them and say, “We bought it from them,” and show proof. You get that cleared up through quiet title. It can be possibly difficult. The other thing I’ve done is, I’ve done a brand-new mortgage and note.
On some stuff, that had a lot of hair to it and cancels the other one and issues a new one. You still at some point in time have to get it cleaned up because of the cancellation or the payoff would still show that the assignment wasn’t missing. If you can’t get it, talk to the attorney. Your option is going to be quiet title, which people don’t understand what quiet title is. It’s a court action to clean up a title history or title report is what that is. They’re more common than you want them to be. I hope that answered your questions. Thank you for joining me. We’re going to go through CFDs, which are very different from notes when you’re reviewing collateral. That’s one of the major differences. People who are either looking at CFDs or contemplating investing in CFDs, I recommend you catch it either on Facebook Live or the blog or join us live. Thank you very much.
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