The buyer has the same payoff balance they originally agreed to, the investor earned a good
rate of return; the note seller received the cash he needed now plus the balance when the note was paid
In the event of a default or foreclosure, the scenario is identical with one
caveat. The investor will make "best effort" to service and collect
the account. In the event the investor is unable to collect the payments the note seller will be contacted and
given numerous opportunities to "step in" to assist in collecting the payments.
Remember: it is still your note, you are in 1st place, the investor has an "assignment" but
like any other lender (mortgage, auto or otherwise) we never want the collateral. The real estate is merely the security to assure repayment. We don't want the real estate; we want the payments that we
So what are your options?
Payoff the outstanding balance on the partial purchase and the note will be re-conveyed to you; allowing you to
renegotiate the loan or handle the foreclosure in the normal fashion as though you had not done the partial
Assist us in working with the defaulted payor; "cash for keys" or any other easy method of getting the homeowner
out of the property so it can be cleaned up and resold.
Make the payments on behalf of the payor and YOU handle the foreclosure; cleanup, repair and resell the property
possibly at a profit. The investor receives the small payoff on the partial, you keep everything above
The possibilities are too numerous to consider, but again; remember we never want the real estate.
In the event the note seller does not wish to exercise any options to mitigate the situation
the investor will foreclose; the property will be sold at a foreclosure auction for the current balance on the
original note (in our example $105,823.48) the note seller will receive all proceeds over the investor's
In all fairness; it must be said in the unlikely event the note seller refuses to participate
or pay off the investor, the investor must foreclose on YOUR note to recoup their investment. If the property
does not sell and becomes an REO; proceeds from any future sale or
purchase money mortgage will not benefit the note seller.
You Can Download This Entire
Document with an Amortization Schedule Here.
And that's how a "Partial Purchase" works. You truly
can have your cake and eat it too.
605-229-9795 right now or provide some basic information about your note on our "Quote Request".
Trust Deed Investments