Sell a Residential Mortgage Note
We buy performing and non-performing residential mortgage notes — owner-financed first liens on single-family homes, condos, and small multifamily.
- Property types SFH, condo, townhome, 2–4 units
- Lien position First liens preferred
- Status Performing & non-performing
- Typical close 14–30 days
A residential mortgage note is the most common note we buy. It's the promise to repay created when a homeowner sells a house and finances the buyer themselves — owner financing — instead of the buyer getting a bank loan. The seller becomes the lender, holding a promissory note secured by a deed of trust or mortgage on the home. If you hold one of these notes and would rather have a lump sum of cash than wait years for monthly payments, we buy them.
What we look for
We buy residential notes secured by single-family homes, condominiums, townhomes, and small (2–4 unit) residential properties. The notes we can price most aggressively share a few traits:
- First-lien position. A first lien is paid before any other claim on the property, which protects the investment-to-value cushion. We strongly prefer first liens; second liens are considered case by case.
- A clear payment history. Even six to twelve months of on-time, documented payments — seasoning — meaningfully improves your offer.
- Reasonable equity. A lower loan-to-value ratio means the home comfortably covers the balance if the borrower stops paying.
- Clean documentation. The original note, the recorded security instrument, a settlement statement, and proof of insurance let us underwrite quickly.
Performing and non-performing
We buy both. If your note is current, it's valued on the future payment stream and you'll typically see the smallest discount. If the borrower has fallen behind, we shift to valuing the property and the cost to recover it — see performing vs non-performing notes. A default doesn't make your note unsellable; it simply changes how we price it.
Why state law matters
Where the property sits affects what your note is worth. In a non-judicial foreclosure state like Texas (about 41–90 days) or Georgia (about 30–60 days), recovery on a default is fast and inexpensive, so residential notes there command stronger prices. In judicial states like Florida or New York, foreclosure can take many months to over a year, which a buyer prices in. We buy in all 50 states and adjust for each state's process — explore our state-by-state guides.
Full or partial sale
You don't have to sell the whole note. A partial purchase lets you sell a set number of upcoming payments for cash now and keep the rest of the note, which reverts to you later. It's a popular way to raise money while staying invested in the back end of the note.
How to get a quote
Tell us the basics — property address, unpaid balance, interest rate, monthly payment, and payment status — and we'll provide a free, no-obligation cash quote, usually within one business day. Try the note value calculator first to see an estimated range, then send your details for a firm number.
Frequently asked questions
Do you buy second-lien residential notes?
We focus on first-lien residential notes because they offer the strongest collateral protection. Second liens are reviewed case by case and are valued more conservatively, since a senior lien is paid first if the property is sold or foreclosed.
Can I sell a residential note that's behind on payments?
Yes. We buy non-performing residential notes. The value is based on the property and the cost and timeline to recover it rather than on a reliable payment stream, so the discount is deeper — but the note is still sellable.
How long does it take to sell a residential note?
Most residential note purchases close in about 14 to 30 days once we have the documents and a clear title. Timing depends on how quickly we receive the note, the security instrument, and any title or servicing records.