Selling a private DOT to a third party?

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I own a single-family home ( for about 2 1/2 years) that is privately financed by a family member. Family member received an offer from a third party to buy the Deed of Trust. From the letter (addressed specifically to the family member) they could sell the note, receive cash, and we (the property owner) would simply send the mortgage payment to a different address (with no change in the terms of the note). This concept is intriguing because, if we were to do this, the family member would be willing to make that money available to buy-fix-flip some properties. Does anyone out there have any experience in selling DOT on a privately-financed property? Any red flags? The company is First National Acceptance Company in Lansing MI, which appears to be a solid, reputable company with A+ rating at the BBB. I found a few negative comments on the internet, but they seemed to be from people that may not have fully understood what they were doing.

Simply put, this appears to be a way to get cash out of a property and use it for other investing activities.  I welcome your comments.

The biggest catch will be that First National Acceptance will probably make an offer with a significant discount on the DOT/Mortgage Note cost and your family member will probably not be interested in selling with a 20 - 40% discount. If they could get 95-100% from FNA, it would be a good thing for all.

Follow-up:  For my own education, I called the company and talked with a rep to learn more about the process.  He said they generally offer 70 to 90% of the payoff value and cover all closing costs.  The terms of the loan stay the same for the borrower and they do not sell the loan to anyone else in the future.  In the end though he offered only $45,000 (mainly because it is a rental and not owner-occupied) to buy out the note that has a payoff of about $115,000.  In our case it is not a good deal.  However, in another case, with a different set of numbers, it might be something to consider. 

Selling a note might be a good option for a lender if their situation changed and they wanted or needed to raise some cash quickly.  Another possible motivation that came to mind was a case where the original lender has passed away and the surviving spouse or other heirs just want to clean up the estate. 

First National Acceptance Company makes money by purchasing notes at a discount. I can't find fault with that because real estate investors make money by purchasing properties at a discount - similar business concept.  In this case, it was not the right tool for the job however I will keep their contact information because there may be a future situation where it makes sense.

That is a pretty big discount.  If your family member is still interested in selling PM me and I can give you some ideas on how to get more for your note.  The bit about it being a rental is more of an excuse then anything.