Definitely a discount but I don't see a third or a half at all.

Investors made offers to other investors to be bought out at 75 cents on the dollar (pretty normal process in trust deed lending - either stay in the deal until the end - or get out now at a discount.)

I have 3 right now only because they got a new listing discount.  

The house I am looking at is a private sale from an older family friend moving into senior living (discounted).

Also you would not reduce the price because of the interest payment. that is not how it works.3. yes the note could be sold, but at what type of discount and what if the borrower stopped paying.while there are a lot of posts on seller financing, some estimiate less than 1% of all transaction have seller financing and the ones that do are first position only with an average of 30% down payment - most of these are to people who do not have verifiable income.Thinking you will get conventional financing then seller financing will be uphill battle as the conventional lender most likely will not approve a 2nd mortgage for purchase.not trying to dissuade you, just wanted to provide some key insights so you do not spend 1000 hours chasing something that is impossible to find.

. - Forced Apperception (BRRRR or buying at a discount) is also a hedge against corrections.

I follow a program that teaches how to maximize points and buy discount travel.

If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

That way you can still get an additional discount, you have them do the work so no liabilities, and you shouldn't have to worry about those fees.

Option 2 with second lender is, get an FHA loan at 3.5% and use the concession to buy discount points and bring a 6.2% interest rate down to a 5.4% permanent buy down, putting me at around $3,450.00 monthly PITI and also adding 8k to the top of the loan for mortgage insurance.