Posted by Anne_nd on November 03, 2009 at 07:13:44:
In Reply to: Can I collect late fees if I've sold the paper? posted by Rich on October 30, 2009 at 12:31:48:
A couple of things come to mind:
First, of course you can collect back late fees, either from the new note buyer or the late-paying payor *IF* you build those contingencies into your sale. Or you could price the sale of the notes to your buyer in such a way as to make you feel whole without getting the late fees.
Second, you should have in your paperwork with the payor a description of how the payments are assigned: first to back late fees, next to lost discounts, etc., etc. However it works for you (and a local lawyer can help with this as it can be subject to local laws).
I have purchased notes where the seller disclosed bad payment history, and requested that I send them a certain amount from my payment each month. It worked out just fine. But it implies a certain level of trust, and both of us were in full possession of the facts of the payor's history.
disclose, disclose, disclose!
good luck,
Anne