Heritage Financial Holdings, LLC
3000 S. Hulen St. Suite 124 #2012, Fort Worth, Texas 76109
(682)-203-7789 | brian@heritagefinancialholdings.com
heritagefinancialholdings.com
How to Use This Checklist
Use this to screen a note before you commit capital.
Rule: If it is not documented, treat it as unknown until verified.
Start with Section 1. If you hit a red flag you cannot resolve with documents, pause or pass.
1) Deal Basics
Confirm property address, county, and property type.
Confirm lien position (1st or 2nd) and document it.
Confirm current unpaid principal balance (UPB).
Confirm current monthly payment amount (P&I, and escrow if applicable).
Confirm maturity date and remaining term.
2) Payment History
Get the last 12 months payment history (servicer statement preferred).
Confirm how many late payments occurred in the last 12 months.
Confirm whether any payments were partial and why.
Confirm the most recent payment date and amount.
If the note is re-performing, confirm how long it has been current since the last default.
3) Collateral and Value Support
Get value support (BPO, appraisal, or credible comps) with the date it was prepared.
Review recent property photos or condition notes (if available).
Confirm occupancy status if available (owner, tenant, vacant).
Make sure the collateral story is documented, not assumed.
4) Title, Recording, and Lien Items
Confirm the Mortgage/Deed of Trust is recorded and obtain recording information.
Confirm the assignment chain is complete (from originator to current seller).
Review a title or O&E report if available to identify liens and encumbrances.
Identify any HOA or municipal liens if applicable.
5) Taxes and Insurance
Verify property taxes are current (county statement).
If delinquent, document the exact amount and the written cure plan.
Verify hazard insurance is active (declarations page).
Confirm the process to update the mortgagee clause after purchase.
6) Servicing and Reporting
Confirm a professional loan servicer is in place or will board at purchase.
Confirm servicing fees and what is included (statements, online portal, remittance timing).
Confirm how late payments are handled (notices, outreach, reporting).
Confirm how payoffs are handled (payoff quotes and posting).
Decision Rule
Proceed when: payment history is verified, lien position and assignments are clean, taxes and insurance are verified, and servicing/reporting is confirmed.
Proceed with conditions when: a small number of unknowns can be cured quickly in writing and the price reflects that risk.
Pass when: key documents cannot be produced or a major red flag remains unresolved.
The 9 Red Flags (Quick Screen)
Performing without verifiable payment history.
Broken assignment chain or unclear lien position.
Taxes delinquent with no written plan.
Insurance unclear or lapsed.
Collateral value unsupported.
Property condition or occupancy unknown.
No professional servicer or vague servicing plan.
Modification, forbearance, or bankruptcy history hidden.
Missing basic documents.
Seller Document Request
Last 12 months payment history from the servicer (preferred).
Recorded Mortgage/Deed of Trust and full assignment chain (or assignment ready to record).
Title or O&E report confirming lien position and showing liens/encumbrances.
County tax statement showing current status (or delinquency amount plus written cure plan).
Hazard insurance declarations page and process to update mortgagee clause.
Valuation support (BPO/appraisal/comps) with date prepared and any current photos.
Servicer name, fees, boarding process, and reporting/remittance timing.
Disclosure of any modification/forbearance/bankruptcy history with documents and dates.
A file index showing what is included in the collateral file.
If you want a second set of eyes, schedule a clarity call:
No pressure. You’ll leave with a verification checklist and a clear yes-or-no rubric.