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  1. #1
    Join Date
    Dec 2009
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    1

    Default Who Owns the Title when Promissory Note is Sold

    When A buys a house borrowing money from the bank by signing a promissory note, A makes payments to the bank and the bank owns the notes receivable.

    In the occasion when the bank sells the promissory note to an investment agencies for immediate cash flow, is the bank selling the RIGHT of future cash flow to the agency, or is the bank selling the notes receivable title to the agency? If the bank is selling the notes receivable title to the investment agency, who does A pay the payments to? Is the note receivable removed from the banks financial statement and added to the investment agency's statement since the title has been transferred? Thanks!!

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Who Owns the Title when Promissory Note is Sold

    If they sell the note, they sell the note. If they assign the rights to the proceeds of the note, that's something different from selling the note. Payments are due to whomever is servicing the note for whomever owns the note.

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