Yes, you can still sell a Seller Carryback Note that is not Dodd-Frank compliant, but it may be more difficult to find a buyer, and you may receive a lower price for the note. And the reason is that institutional buyers are not authorized to buy them, as a rule of matter. By the end of the day, however, if the buyer is not interested in selling it in the future but instead holding it until it matures, what matters the most is the real estate that collateralized the loan. For example. If the property is worth $100k and the loan balance is $40k with an attractive interest rate, even if there is a default on the loan, the loan holder can always foreclose on the property typically for .80 on the dollar (in our example, $80k).

Selling a non-Dodd-Frank compliant note carries more risk for the buyer, as they may be subject to a more restrictive market to move it along. As a result, buyers may be more hesitant to purchase non-compliant notes or may require a discount to compensate for the additional risk.

If you decide to sell a non-Dodd-Frank compliant note, it is essential to disclose this information to potential buyers. Failure to disclose this information can result in legal consequences and can damage your reputation in the industry.

To increase the chances of finding a buyer for your non-compliant note, you may want to consider working with a reputable note broker or note buyer who specializes in non-compliant notes. They may have more experience and resources to find a buyer who is willing to take on the additional risk.

Overall, while it is possible to sell a non-Dodd-Frank compliant Seller Carryback Note, it is important to understand that you may face additional challenges and may receive a lower price for the note. It is important to fully disclose any relevant information to potential buyers and to work with a reputable professional in the industry.