Question on NOTES
8-/ If person A purchases a note at a reduced amount from person B, who is being made payments to by person C. And Person C is also paying on a partial loan from the bank for the original selling cost of the property minus the amount of the note.... ... ok, Person C defaults. What happens? Does the bank get the property? What happens to the note holder? Total loss?
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Hopefully, the junior note will have anticipated what to do in the event of a senior lien.
The junior noteholder could then 'foreclose' as well.
If the deal made sense, the junior could settle with the senior... and lawfully move to acquire the property.