Property report options have expanded beyond the full title search because the uses of these reports have changed, making it unnecessary to purchase a full report if you have a specific focus.
For instance, on new loans you can simply search and confirm that the mortgage was recorded and the lien position is intact. For charge-offs, identifying if the lender still has responsibility in the property presents a low-cost alternative.
With loans in default, verifying the assignment chain of the subject mortgage only confirms beneficial rights in compliance with regulations prior to first legal - without the full search expense. Since many loans will cure prior to first legal, a full search is cost prohibitive.
In all cases you can create a waterfall process to eliminate the majority of the population, then dive deeper in those that don’t fall out. With new loans you will only need to complete more research where the mortgage is not found of record and/or appears to be in the wrong lien position. This also applies to aged lien status reports– by locating a document that extinguishes the lien, the lender’s interest in the property can be satisfied. Otherwise, more research should be completed in order to file the proper documentation. A $25 search eliminates the risk of thousands of dollars per loan if the interest in a property has been paid in full, deeded or charged-off, releasing the lender of property preservation or taxes.
There are also report options that can be used for due diligence prior to purchasing a pool of loans or securitization, especially with the offload of nonperforming assets. The key is knowing your position, assignment chain or collateral issues, including all encumbrances are on the properties, including delinquent taxes. Having the report will identify immediate costs associated with the loan that may not be included in the offering or covered by recourse.
If you need assistance deciding which property report is right for you, contact sales today by clicking here.
