Posted by David Alexander on April 11, 1999 at 20:05:00:
Depends. John teaches you to buy them with a mirroring note for the balance in other words, you would get cash
and a note for the balance of the 300 hundred payments, therefore your concern wouldn’t be whether the note pays off early. But, most commonly the person your selling to just buys the first part and they are given a seperate amotization schedule with the Note purchased.
So the answers for 1 & 2 are they get paid first according to the amortization schedule. The answer to 3 depends on how you structure the note. You could opt to make the payments yourself and foreclose to protect your interest. Or you could let the buyer handle it and then it would be handled as 1 & 2 minus legal fees, etc.
hope this helps,