3 Step Due Diligence Guide For Buying Debt Portfolios

• Step 1: Due Diligence 1.1

  • Receiving a portfolio from a potential debt seller

    • Preliminary questions

      1. Type of debt

      2. Agency level

      3. How long the file has been shelved

      4. Chain of title ( ask to review after you sign an NDA and offer an LOI to purchase )

      5. Previous collect tactics

      6. Copies of the signed contract or check and the billing statement

• Step 2: Due Diligence 1.2
  Masked Portfolio review:

  • Key metrics to determine a quality portfolio

    • Original account numbers

    • Original loan amount

    • Overall average account balance

    • Original loan date

    • Last payment date

    • Charge off date

    • Debtor States

    • Zip codes

• Step 3: Due Diligence 1.3

  • If all metrics are provided and met, we will then review the unmasked file to determine performance. The following are key metrics to determine the performance of a portfolio.

    • Social Security Numbers

    • Date of Birth

    • Phone Number

    • Address

    • Reference Name

    • Reference Number

    • Reference Address

    • Employer

Media (copies of the signed contract, check, or billing statement)

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