Posted by dave groscup on May 16, 1999 at 20:18:33:
I am inquiring as to buying rehab properties from HUD,VA,etc. using a cashed out private mortgage note.
My idea would be to do the following:
Create a mortgage between me (buyer) and a third party who would loan me the money and hold the mortgage(not the seller). I would then sell the note to an investor(note buyer) who would cash out the note at closing and transfer funds to the seller. My question is this: When I see investors advertising to buy notes they always say they buy seller-held notes. Could a third party create a note with me and would an investor buy the note(what’s the difference ?)