This is a question I get asked a lot. And, if a seller does not ask, I will bring it up.
NO – the terms will not change!
A big challenge for us in the note buying business is to communicate the following: “We are buying the terms you agreed to with your buyer. If the terms are lousy, our price will be lousy. If the terms are great, our price will be great.” Either way, the process is streamlined. Neither seller nor note payor will experience any added anxiety because the note buyer is changing their terms. The only real difference for the note payor is that he is paying someone else.
At closing, the seller simply signs a Note Endorsement. This document simply signs over – or endorses- the note to the note buyer, and is kept with the Original Signed Promissory Note. Normally, the endorsement will be without recourse. This term means that the seller accepts no responsibility for any future note payments. Again, an added protection for the seller.