Foreclosing on a Note With Partial Investor

2 Replies

Say that I buy a 30 year note and sell the first 10 years worth of payments as a partial to an investor. The borrower stops paying and I want to start the foreclosure process. Since the investor has partial ownership of this note do I need permission from him/her to foreclose? What if they own majority of the note (i.e. 20 out of the 30 years)? Does he have more say than me on foreclosing?

@Franklin Tirrell

As bob mentioned what is outlined in the agreement is what dictates the terms.

I would recommend that you keep an amortization schedule for the partial in case of an early payout you both understand how much is owed.

Also make sure to have an attorney write your agreement as if it is not written properly it could be violating securities laws