Newsletter - July 2019
Stop me if you’ve heard this one before - A couple purchases their first home. It’s May 2008. Less than a year later…
Yeah, it’s the classic “underwater” mortgage story. I don’t have to go into the gritty details, because the story I’m talking about is a fairly standard version of the story we are all now SO familiar with. This particular one takes place in New Jersey, and what makes it worthy of a blog post feature in 2015 is where the couple is taking their litigious fight. Hint: It’s not a state court... it’s a FEDERAL court.
(If you want the gritty details, check out this article in NJSpotlight.)
Long story short: in the flurry of transactions that tends to occur after the origination of a mortgage, there is a very real chance of something getting lost along the way. And whether or not that clerical oversight was your fault, it can jeopardize your ability to collect on the debt. Not only that, but it can land you in a legal battle — and possibly federal court.
The stakes seem to be getting higher and higher, and the importance of protecting your portfolio is rising with them. Luckily, there is a pretty straightforward way to do just that.
Assignment Verification Searches (AVR)
Essentially, an AVR is a report that lays out the chain of assignments for a particular mortgage. It is proof that you are clearly the owner of the debt. It is like a firewall that insulates your portfolio from litigation that challenges your ownership. But it is more than an insurance policy.
An AVR also serves as a vigilant internal auditor, alerting you to potential red flags that could open your portfolio to damaging litigation. If you obtain an AVR for every mortgage you purchase, you can be sure you know the whole history of the debt, and won’t be caught off-guard by a rotten egg hidden in your portfolio.
Important NOTE: Not all AVRs are created equal. Many abstractors are not interested in searching through thousands of records to give you a complete picture of a mortgage’s history. We’ve heard of many cases where an AVR returned “No Assignments Found,” when a professional search quickly recovered the assignment.
If you are interested in getting AVRs you can trust (and I highly recommend it), rest assured that Blue Streak Docs takes the extra time to ensure that all indexes are thoroughly searched, so that you get the correct information every time. And if you haven’t worked with us yet, you can try us out and get your 5th order FREE!
Employee Of The Month
“Jacob, our IT Manager is our October Employee of the Month. Jacob always makes himself available to help keep our systems going so that our team here at Blue Streak Docs can stay productive. He’s quick to answer questions and make himself available to the staff, even when its after hours. Jacob’s technical capabilities are of high value and he always comes up with new ways to streamlines our processes to ensure we are able to perform for our clients to the best of our abilities. We couldn’t do it without Jacobs constant support.”