Posted by Terry Vaughan on March 21, 2000 at 11:10:16:
Getting credit history from your payor should be done when you originate (carry back) the note when you are the seller of the property.
When you are buying a note that has all ready been created, the seller of the note should provide you with all the credit information he has. If there is no credit report, no problem.
My attorney says (sometime back now), if you are the prospective buyer of a “security” instrument, you may run the credit of the payor, without his permission.
The “holder” (current owner) may run the credit at any time to continue to insure his note is still secure.
You should always check the language of the note. Usually there is some paragraph that talks about “security” and performance of the payor. This is the language you may find comforting.
The only exceptions you may find will be in different “State” laws, so you will want to check with your local attorney or note broker for the differences.