Dictionary of Business Terms: discounted loan
discounted loan
one that is offered or traded for less than its face value.
Dictionary of Real Estate Terms: discounted loan
discounted loan
one that is offered or traded for less than its face value.
Example: When the Deavers sold their house, they accepted a second mortgage as part of the purchase price. The Deavers then sold the loan to an investor for 75% of its face value. The purchaser of this discounted loan is entitled to all interest and principal payments stipulated in the mortgage contract.
