Fred,
How is your Little Rock REO progressing ? I am interested in talking to you and swap notes – I have a REO asset in LittleRock that I am considering my next options.
I am interested in selling partials. I find many terms in the partial agreement confusing, and I have read about possible scenarios where partials border on being security that is not secured completely by the Real Estate. Can you explain ?
e.g
1. — Section F mentions that this agreement is not a security. Is that sufficient to not require filing with SEC ? What happens if borrower defaults during partial term — who steps in and which clauses in the agreement covers that ? That control of transaction which could make partial an unsecured/partly-secured security ?.
2. Can you also explain what clauses are special in the partial purchase agreement – that are missing in partial sell agreement — I understand handling of default and full payoff are covered.
3. Is the security recorded for a partial sale ?
4. The agreement makes no mention of yield receivable by purchaser but only how purchaser gets N installments of amount X. Is this on purpose ? Is same caution needed when we approach an investor and describe their interest in partial purchase from us ?
