Does One Need A License To Purchase Liens Or Judgments

Does One Need A License To Purchase Liens Or Judgments

No, one does not need a license to purchase property liens or judgments in virtually all cases, especially when buying from a public auction. And a real estate license is not required to review judgments and liens in public records; however, specific state and local regulations govern the buying and selling of tax liens. Further, being in the position of a ‘default mortgage investor’, we do not need any specialty license like a mortgage broker must have because we legally own the mortgages. While collecting on a judgment one owns requires no license, verify if the given state requires any licensing to resell defaulted mortgages. Thankfully, this license is not difficult to obtain.

If one chooses to use a statutory entity, such as an LLC or Corporation, to operate their business through, then obtaining a business license for ~$20 will be needed. It serves to deliver credibility and legitimacy to a number of creditors who may be researching the business name. Although not required, one can get a license as a collection agency, by paying ~$500 for the bond, agreeing to certain terms and guidelines of how to operate, and that’s it!

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