Who gets the equity?

[David Polcari]

Say a person owns their house free and clear and it's worth $100,000 and they decide to sell. They decide they want to carry a note on it. The seller agrees to take $20,000 down and finance the other $80,000. They then decide to sell the note for X amount of money to a note investor. Who get's the $20,000 equity after the note is sold to the investor? I understand the note seller gets the actual $20,000 cash when they sell the house, but who gets the equity once the note is purchased by the investor? Does the note investor realize the equity? Or do they only realize it in the event of a foreclosure? Thanks for any help in advance!