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When Your Borrower Stops Paying The Equity Rarely Goes To You

by: Dawn - Senior Seller Financed Note AnalystPublished on: 18/06/2026

This blog post describes what happens to the equity in the property when the borrower stops paying. It rarely goes back to the noteholder. Either the borrower will get it or investors will get it. Usually not the note holder.

Equity Myths
When Your Borrower Stops Paying The Equity Rarely Goes To You