the question during your conversation , something like,
If I could make you a loan against your note how much
would you need? That question will sometimes fish out
how much cash the seller is really after.
My calculator says that 120 payments of 255.73 at 24% yield are worth $11, 598.73 At the end of 135 payments the principal balance due would be $17,848. I would think a compensating note would be payments of $255.73 for 105 months starting at month number 136.
If you can get them to accept a note for half then do so. That is one technique for buying notes. Offer to buy half the number of payments for half the balance due. That way you earn interest on the whole amount during that time and the yield goes up and up. Why not ask the seller what they want or will take for the compensating note.
Is a 24% enough for a high LTV. Would an offer of 60 payments for $5799.36(not $8889.40) with a commitment to buy the next sixty meet their need?