1. Question: Who is my point of contact Answer: The principle of Metropolitan Financial
2. Question: Other than my work sheet, what is do you require? Answer: See below
a. Verification of borrower’s payments, preferably from a servicer. b. Copy of the note c. What are your expectations of what you want to receive? How much of a discount are you willing to accept? d. Forbearance Agreement; e. Mortgagee’s Title policy; f. BPO with interior pictures; g. Proof of homeowner’s insurance; h. What name you hold the note in?
3. Question: Who pays for the due diligence? Ie, credit reports, title checks etc Answer: As the buyer (broker), Metropolitan does.
4. Question: What is the turnaround time to give me answer? Answer: It depends on how complete the file is.
5. Question: What types of note collateral will you consider? Answer: Only notes secured by residential properties, commercial properties, land, business notes, etc.)
6. Question: What size notes do you prefer? Answer: Any size will be considered. Any quantity will be considered.
7. Question: When a quote is accepted what do you want me to do? Answer: Respond quickly and thoroughly to any questions Metropolitan may have.
8. Question: When a quote is accepted what do you want me to do?
9. Follow our instructions. Most likely we’ll ask you to deliver your collateral file to an escrow company and send up copies of the file as needed.
10. Question: Do you take care of all of the due diligence? Answer: Yes, with your cooperation.
Other items for consideration
1. Question: Do you purchase second position notes? A. yes
2. Question: Do you purchase non-performing notes? A. Absolutely
3. Question: Do you purchase simultaneous transactions, pools or portfolios of notes? A. Yes and no—it depends.
4. Question: Do you prefer notes in certain states, areas or regions? A. Again it depends
5. Question: Are there any notes or areas you don’t want or like? A. It depends—let’s discuss
6. Question: Are you a direct funder? A. No
7. Question: Do you use your own funds? A. Usually, not
8. Question: Do you borrow your funds to purchase the notes? A. We have JV partners
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This article written by David Franecki