What firm do you all use for credit checks and title searches (and what are the costs you are paying)?

Kailua,

I have an account with Credco for credit reports. I only pull credit reports on loans that I own and not when I am doing the due diligence. I ask the seller to provide that. I have accounts with Integrated Assets for BPOs and AVMs ($100 and $14 respectively) and LPS for owners and encumberances reports (title swipe) and those vary by state from $90 to $160.

I have an account with Clear Capital, but I have not used them as of yet.

Thanks Kevin. How would you verify the balance on the first (e.g., to determine how much equity there is) when buying a second during due diligence (assuming you can't get an automated voice response payoff from the servicer) without a credit report? Would anyone know if the following provision of the Fair Credit Reporting Act apply to credit checks before purchase of a note, i.e., allow a potential investor to check the credit of a borrower before purchasing a note?

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b] (a) In general. Subject to subsection (c), any consumer reporting agency may furnish a
consumer report under the following circumstances and no other:
...(E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or


Paul

Paul,

To answer you question, you would ask the seller to get that information for you. If they are on-top of their game, they shoud have an idea of the UPB of the first mortgage. They also have the ability to get a credit report and share that with you. I look for an authorization in the file that I can fax to the 1st lien holder to get that information or I request that from the borrower.

Happy Note Buying!
Kevin

Who should one contact for a title report/ O&E at LSI?
I got in touch with one of their sales rep and he refused to deal with me. He mentioend that he only delas with companies which order a very large number of reports from them...