selling a note

Selling A Note

With interest rates near historic lows, now is an excellent time to sell your note. The Mortgage Buyer, Inc offers important advice to help you make informed decisions and receive the highest cash price when you sell a note.

Facts to know when you sell a note.

Fact 1:
Almost every note can be sold, even notes where the payments are not being made on a timely basis.
Fact 2:
There are a number of companies that purchase notes. Together, we create a very active and competitive market.
Fact 3:
Note holders have a number of different sale alternatives available to them; each can be designed to help meet a specific goal you would like to achieve. For example, The Mortgage Buyer, Inc. offers customized note payment options.
Fact 4:
Providing as much information as possible about your note will help you receive the highest possible sale price.
Fact 5:
These are the steps necessary to complete the sale of a note.
  • The value of the property must be established by completing a drive-by appraisal.
  • A policy of title insurance must be purchased on the note.
  • The outstanding balance of the note must be verified with the Borrower.

At The Mortgage Buyer, we do all of the work and pay all of the expenses necessary to complete these steps.

As previously mentioned, with interest rates near historical lows there will probably never be a better time to sell a note. If you believe that future interest rates are more likely to go up than down, now would be the right time to turn your note investment into cash.

Whether you would like to discuss the possibility of selling your note or would simply like to have a question answered, we invite you to contact us by phone at (800) 618-2485 or email the Mortgage Buyer, Inc. Or complete our online form to receive a no-obligation, free note quote.


I just received the e-mail and wire. I want to thank you for all of your help. You have been all I could hope for. Thank you again.

J. Pattno, AuSable Forks, NY

Tips for getting the best cash price.

Step 1:
It is important to have complete and accurate information available when you talk with note buyers. Locate your documents; including the note and the settlement statement from the property sale.
Step 2:
Do your homework. Contact a number of note buyers. Ask them how they do business, learn as much as you can and request a purchase proposal from each of them.
Step 3:
Make your decision about selling. If you decide to sell your note, we suggest doing business with the company that offers you the best combination of price and service.
Step 4:
Enter into a purchase and sale agreement with the company you have chosen. Before you sign the agreement, be sure to understand who pays the transaction expenses and make sure you are not responsible for any charges if the sale does not go through.
Step 5:
The sale should be closed at a title company or attorney’s office. This is the best and safest option for you because it will provide a third-party closing agent to protect your documents and sale proceeds. The Mortgage Buyer offers this closing service to everyone we do business with.

Taking these steps will provide you with multiple purchase offers to consider and also provide some insight into the type of company you will be conducting business with. Choosing the best company to work with is as important as receiving the highest sale price.

Establish Market Value of your note.

We recommend that anyone who wishes to sell a note first establish its "market value". This can be accomplished by contacting a number of professional companies like The Mortgage Buyer, Inc. that purchase privately-held notes. Take the time to ask questions and discuss your individual situation. Provide all of the information they need to do a thorough job for you and be sure to request all purchase offers in writing.

The market value of an owner-financed note is defined as the maximum cash price a note holder can sell it for in an active and competitive marketplace. Fortunately for note holders, an active and competitive market does exist for privately held notes. Online research will produce a large number of companies that purchase private notes. Of these, there are a handful of experienced and reputable companies that you have an opportunity to do business with. We recommend that you contact multiple note buyers before deciding who to conduct business with.

The factors that note investors will consider when evaluating your note for purchase include:


Note holders exploring the option of liquidating should reach out to several note investors for information. A few calls should be sufficient to explore your options. To help establish the market value of your note, call The Mortgage Buyer at (800) 618-2485, contact us via email, or complete our online note quote form.