A partial purchase can also involve splitting the monthly payments received from the note buyer between the note buyer and the note seller, also known as a split partial. Using the same example of 210 payments of $1,162.95 each, an note buyer might concur to acquire $800 of each remaining payment leaving a remaining residual of $362.95 to the note seller for the next 210 months. This is called a split-partial purchase.
The terms of a partial purchase are spelled out in the Partial Purchase Agreement. This important document outlines the servicing arrangement along with what happens in the event of an early payoff or default by the buyer. Competent legal counsel should review the partial purchase agreement to protect the rights of all parties involved in the transaction.
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