THE SCENARIO
A couple of years ago, my friend (Billy) was looking to loan out some money and earn some interest.
There was a note investor (Trina) who found a mortgage note that wasn't being paid. Trina figured she could buy that note at a deep discount since the payments weren't being made, and she felt safe doing so because it was secured to good collateral (a house). Trina figured if she could work with the people in the house and get them paying again then she could make a good profit. However, Trina didn't didn't have the money to buy the note, so she borrowed the money from a friend of mine (Billy).
Trina worked with the people in the house, but instead of making payments again they just gave up the house (relinquished the deed to Trina). Trina found a new buyer and sold the house "on terms", meaning that she took a down pay...
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