Selling Partial Notes
If an investor buys some payments on a note, let's say 12 monthly
payments, and leaves a $100,000 balloon for the note holder to carry,
how is this divided if the property owner decides to
payoff/sell/re-finance?
Payments up to the total which would have been due to the investor are made first, original holder of the note keeps the balance.
Assuming you are the original holder you may be able to convince the investor to take some discount for early payment. Maybe not.