“So if I sell my private mortgage note, what changes for the Payer?”
This is a common question with a simple answer.
Nothing changes for the payer except where they mail the payment. When a note is sold, the terms of the note remain the same.
The payment amount, interest rate, and due dates remain the same. If there is a balloon payment or “bump” payments, they also remain the same.
An investor purchases the note “subject to” the terms and conditions of the note signed by the payer. The only way any terms could be changed would be with a written modification signed by all parties (the payer and the holder).