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"I am getting 8% interest and that is a lot better then the alternatives."

For fixed-income investments, this is a very good rate! Today one can get a mortgage for ... (consulting 30-year FRM@5.92%, 15-year FRM@5.25%. These are with good credit ratings.

Depending on when those mortgage were taken out, 8% could have been the going rate (e.g., around February-June 2000). If the buyers had good credit, they can refinance at the current rates and then the sellers would have the same poblems as other collateralized mortgage obligation investors: having the "bond" called and now have a bunch of cash with no where to invest at such attractive rates. If the buyers can't refinance at a lower rate, it would have been because of poor credit, which means the sellers are taking on risks for carrying those mortgages.

So, while 8% sounds attractive in light of today's rates, they are far from a "free lunch".
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