Purchasing Notes
Hi Everyone,
I am working with a client who is sitting on some substantial amount of land and several businesses. Several years ago, she had to do some sort of bankruptcy as advised by her attorney, and was forced to do a consolidation. Essentially, all of businesses and land they own was somehow wrapped into this bankruptcy and was forced to do a repayment on the loans she took out. Well fast forward a few years later, the debt on the property/business is around $4M, but its worth roughly $18M. I just found out that an investor had purchased the note for a certain amount, and they have been making payments to a newly formed LLC.
My question is, what happens when an investor buy the note on the property? Can the owner redeem it? If I wanted to pay off the loan amount, will the owner receive a free and clear tittle?
I am trying to find out more information on what happens once an investor purchases the note, but not having any luck.
Thank you for your input!