[Not a Fan]

I have a question to an unusual loan situation. A person had a loan at another bank. This loan was on his home and a one-third interest in his parent’s home in which his brother lives. He sold his home and paid that toward the principle of his loan. When he asked his bank to modify his existing loan so that it would lower his $1,600 a month payment so he could move and purchase another home, they refused. We therefore, bought this loan from this bank, modified the note and put it on our books.

Two question I have. One, if we buy a Loan, should we not get the whole file not just the Note and Recorded documents? Second, since they did not provide us with the whole file, do we have to get disclosures signed such as Applicable Laws, Affiliated Business, Federal Credit Disclosure since they were in original file but not provided to us? Thanks for you input!

[rcooper]

I recommend you seek advice from your bank’s attorney on what steps you need to take for this transaction.

[Author]

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