Posted by David Butler on January 28, 2002 at 16:49:48:
On the face of it, this looks easy enough… a simple endorsement to the back of the note, and a formal assignment of beneficial interest form available through most title companies (for transferring the interest in the security instrument) will do the trick.
But… there are a number of issues to be on the look out for, especially with nonperforming paper. Unfortunately I am on a tight schedule today and can’t offer much, so hopefully Jon, Mike, Terry, or someone else will help out.
One thing to keep in mind is that generally, when you purchase a note that has had delinquencies, is not presently current, or is otherwise in default, you will not have any of the possible protections offered by being a “holder-in-due course”… and there may be certain defenses available to the Payor that you would generally want to investigate as fully as possible before purchasing the note, or otherwise taking ownership of it.
Hope this helps for now such as it is, and good luck on your deal!
David P. Butler