Paperstac conducts collateral verification in the closing phase of a transaction.
This is optional in the step where you determine closing terms. However, it is optional and highly recommended, as Paperstac covers this cost.
The Collateral Verification Process
The seller receives a FedEx 2-day shipping label to send their collateral to our audit partner (KC Wilson). Once received, the auditor will scan all documents and provide color copies for the buyer to review within the transaction timeline.
What is Reviewed in the Collateral Verification
The auditor will verify the borrower's name, asset types (e.g., Deed of Trust, Security Deed), and the originality of documents (e.g., Original Paper, Original Digital). They'll also check the included Title Policy and provide optional comments.
Viewing the Collateral Verification
A link will appear in your transaction timeline once collateral verification has been conducted.
Clicking on the words "Collateral Verification" will open a window where you can review the auditor's findings.
Upon the auditor receiving them from the seller, you can download the color copies of the collateral files the auditor scanned.
The collateral files that were provided allow you to review the chain of title and all of it for yourself.
If you find anything unexpected, you can contact the seller for clarification.
After Reviewing the Collateral Verification
If you are satisfied with the findings in the scanned collateral files, you should sign the disbursement agreement.
The disbursement agreement is the document that indicates that based on the findings in the collateral verification, you are still confident in your purchasing decision and want to complete the transaction.