About 1 month ago I got a call from someone representing a note holder. I was told the note holder wanted to sell the note. The transaction had recently closed, and the 1st payment due date was about 2 weeks away. I told the person I was talking to that we need proof that the borrower has the intent and ability to make the monthly payments, so we have to wait to make sure the 1st payment is made.
I followed up a few days ago and was told the 1st payment check bounced! The note holder found a local investor who was willing to deal with the borrower. He bought the note at a steep discount.
