Make sure you receive PRINCIPAL plus interest each month (loan amortization) so that you  will receive $3226.72 each month for 36 months.  

The seller receiving cash to reinvest or lend and the buyer to receive the payments on the thousands of loans within the MBS.

Mortgage recasting is a great option for homeowners who:Have received a windfall, such as a bonus, inheritance, or proceeds from selling another property.Want to lower their monthly payments without extending their loan term or going through the hassle of refinancing.Are satisfied with their current interest rate and loan terms.How to Get StartedIf you’re considering mortgage recasting, here are the steps to take:Contact Your Lender: Ask if they offer mortgage recasting and confirm your loan’s eligibility.Determine the Lump Sum Amount: Decide how much you can afford to put toward your principal.Calculate Potential Savings: Use an online mortgage calculator or consult with your lender to estimate your new monthly payment and total savings.Submit the Request: Once you’ve made the lump sum payment, your lender will process the recasting and provide a new payment schedule.Final ThoughtsMortgage recasting can be a powerful tool for homeowners looking to reduce their monthly payments and save on interest without the cost and complexity of refinancing.

Run through some of the features you will need like setting up a property, moving in a tenant, receiving rent payments, and publishing online applications.Pay attention to which platform feels the best to you as you perform these functions.

After paying seller closing costs and foreclosure attorney fees, I expect to receive approx. $16,000. 

Based on the comments received thus far I think it's prob make the most sense to hold on to the note.

We have tried multiple local collection agencies, and we have not received a penny for over a hundred thousand dollars of bad debt submitted to them.We keep hearing, "It takes time" but it's been well over a year with the most recent one.

I should have clarified that what I meant was that there are PMs out there that will do the most expedient thing and accept a tenant just to receive a quick commission.  

What's the minimum amount you could receive that would make it worth doing the cash out?

The insurance policy must name [Landlord's Name or Property Management Company] as Additional Interest, ensuring the Landlord receives notice of any policy changes or cancellations.