The discounting of a mortgage is a way for a private party who is acting as a mortgage lender to receive a lump sum of cash instead of having to wait over a long period of time to collect the monthly payments. The typical private lender is a homeowner who has sold their home and agreed to help the buyer with the down payment by accepting a note to be repaid over time.

 

   DISCOUNTING MORTGAGES - Cash purchase of a note secured by real property.  Includes mortgages, trust deeds, and in some cases land contracts.  

 

   DISCOUNTING MORTGAGES - Not actually a loan per se, the discount mortgage (also called cash-out, mortgage purchase, trust deed buy-out, etc.) allows party receiving payments over a period of time to receive a lump sum of cash immediately.