What are the 3 major reasons for a seller or buyer of NPN’s to experience fallout of their asset? On top of the standard title search, we offer additional services specifically geared towards NPN Market, addressing reasons for fall out:
1. Demolition list check and Code Violations
for properties that are scheduled for demolition. In most of the NPN large pools of loans, a few will fall in the category of being demolished and therefore the loan on the property will loose its value. Different counties keep the demolition list is different departments and we have expertise to check if the property is scheduled for demolition in the upcoming month. We also verify any code, building and zoning violations that may cause additional funds to bring the property to code compliance to avoid demolition.
2. Tax Sale Dates
. Many NPN assets are lost to the tax sale or are sold right before a tax sale on the property. If the taxes are delinquent, tax sale date check is a tool buyer can use to properly adjust the price on the asset. By knowing the tax sale date upfront, the buyer may also act more quickly on canceling the tax sale by bringing the tax status to current or even bidding on tax sale to preserve the interest in the property.
3. Bankruptcy check
. We saw many loans are lost to bankruptcy due to acting late and not receiving the notices from bankruptcy court as buyer is not yet a valid note holder and therefore does not have any real interest in the property, until the note exchanges hands and assignments are executed. ProTitleUSA will run the bankruptcy check on the borrowers to verify if there are any active bankruptcy cases and latest status of the case if open. Its important to know this in advance as buyer should file a notice of appears with the bankruptcy court as soon as the sale goes through. We saw many buyers not opting to run bankruptcy search, paying the price later by loosing the loan in bankruptcy order.
ProTitleUSA Standard Title search (Current Owner search) for NPN assets would include:
- Deed search going back to the last out-of-family transaction
- Open mortgage check with all assignments and related documents
- Open liens check
- Open Judgments check
- Current Year Tax Status
- Total tax delinquency report for Prior Years
- Assessment and Legal Description check
- Turn around time is under 48 hours for few assets; 5 days for a pools of several hundred assets; 2 weeks for 1,000-2,000 assets;
We also offer a seller verification search to find out the source of the sale. Almost all of the clients in the NPN market are asking ProTitleUSA to verify the source of the assets for the pool they are evaluating. This service is offered at $50.00 per asset, where by knowing the property address and the date and amount of the mortgage, we can trace the chain of assignments to the last assignment of record and report on the last note holder based on the last assignment for the particular mortgage. Our clients pick random assets from the pool to verify that sale source for all random assets match and source seller information is available to them.
ProTitleUSA specializes in title due diligence for non-performing notes and performing notes nationwide. In fact, we service most of the major player in today’s asset sale market.
Please, call us for corporate account information and special nationwide pricing for NPN and Performing asset due diligence at 888-878-8081 or e-mail us firstname.lastname@example.org.