Yes. After a partial you still own the right to every payment that follows the buyer’s block, and that right can be sold in whole or in part. The price will be lower than the payment totals suggest, because those payments are the furthest away, and your agreement may limit who you can sell to.
What you still own
If you sold the next 60 payments of a note, everything from payment 61 onward is yours. That retained interest is called the reversion, because the note reverts to you once the buyer has been paid.
While the partial runs, the question of who owns the note has an answer in two parts. The note itself sits with the buyer if it was assigned to them at closing, and what you hold in the meantime is a contract right to get it back. That right has a value you can sell.
What the remainder is worth
A buyer marks each payment down for the time they wait for it, and the payments you kept are the ones at the far end. Take a note paying $1,140 a month with 168 payments left, priced at an 8% buyer yield.
| Payments | Scheduled total | Price on day one | |
|---|---|---|---|
| Whole note | 168 | $191,520 | $115,000 |
| First 60 payments | 60 | $68,400 | $56,200 |
| The remaining 108 | 108 | $123,120 | About $58,800 |
Illustrative example. The price of the remainder is the full-sale price minus the price of the first 60 payments, at the same yield.
On day one, the back 108 payments add up to $123,120 on the schedule and are worth about $58,800 to that buyer, which is less than half. Time works in your favor from there. Every month that passes brings those payments closer, so a buyer marks them down less, and a remainder sold in year four fetches more than the same remainder sold in year one, provided the payer has kept paying.
Selling to the buyer you already have
The simplest route is to sell the whole remainder to the buyer who holds the partial, which turns it into a full sale. That buyer already has the note and has already checked the file, so there is less to redo.
You can also sell that buyer another block of payments and keep the rest, for example by extending from 60 payments to 84. An extension of that kind is a second partial, priced on its own and written up as an amendment or a new agreement.
Selling to someone else
A different buyer can purchase your remainder while the first partial is still running, but they would be buying behind someone else who controls the note, and that narrows the field. The cleaner time to bring in a new buyer is after the note has been reassigned to you. At that point it is an ordinary note again, open to a full sale or a new partial purchase with anyone.
Limits your agreement may set
Read the partial agreement before you approach anyone. It may give the current buyer a right of first refusal, meaning the chance to match any offer before you sell elsewhere. It may require the buyer’s written consent to any transfer of your interest. Or it may fix in advance how additional payments will be priced. Each of these narrows your choices, so if you think you may want to sell more later, raise it while the first partial is still being negotiated.
How much of it to sell
When a new cash need has come up, work out the amount and sell only the payments that raise it, since a further block costs you less than giving up everything that remains. With no pressing need, bear in mind that the remainder is the part of your note a sale rewards least, and waiting for the payments pays more.
What to have ready for a price
- Your partial purchase agreement, including any amendments.
- The payment record since the partial closed, from the servicer or the buyer.
- The date the buyer’s block ends and the number of payments left after it.
With those in hand, send us the details and ask for two figures: the whole remainder, and a further block sized to what you need. Set side by side, they show what the far end of the note would add to your cash today and what it would take from your income later.
Related questions
Do I have to sell the remainder to the buyer who holds my partial?
Check your agreement. It may give the current buyer a right of first refusal or require their consent. While the partial is running, a new buyer would be purchasing behind the one who controls the note, so the current buyer is the natural first call.
Is it better to sell the rest now or wait until the note comes back?
The remaining payments are discounted less as they get closer, so waiting generally raises the price if the payer keeps paying. Waiting also means carrying the risk for longer.
Can I sell only a few more payments and keep the rest?
Yes. That is a second partial, sometimes handled as an extension of the first. Selling a further block gives up less than selling everything that remains.