This is a great discussion, thank you all for jumping in. Pretty clear this is not the type of note I'm looking for (right now), but I'd like to learn a little more about what this purchase and exit strategy might look like.
So if I purchase the note and have a signed DIL, does that essentially mean I'm purchasing the deed? Of course there could be other liens on the property that might cloud title that would need to be resolved, but what does that exit strategy look like? Why would somebody purchase a note where the borrow has signed a DIL?
I first thought, well maybe they want to simply purchase the property at a discount and fix it up, rent it out, or sell it... however somebody is still [presumably] living there... wouldn't they technically be squaters at this point, assuming the note seller hasn't arranged a lease agreement? Or does a DIL usually have verbiage that requires the person vacate with sufficient notice?
What happens to the note, would I simply purchase the note, take title on the deed, then erase/forgive the note? Maybe the exit would be to work with the borrower on a brand new seller-financed deal if they wanted to stay in the property?
