Posted by John Smith, IV on October 09, 2003 at 10:27:21:
I guess that no one can stop the seller and noteholder from selling his note at the price that he wants.
If you don’t leave any paper trail, and you a year later buy a 20K note discounted for 1K…then I don’t know.
You need to consult a lawyer.
For those who pay taxes, there might be tax consequences. Consult your CPA as well.
But if there is a signed agreement and it is proven that in fact the noteholder never had plans to collect on his note…BORDERLINE!