Selling mortgage notes

Selling a real estate note

Updated 2026-10-19

A real estate note is any promise to pay that's secured by property: a mortgage note, a deed of trust note, or a note on commercial property or land. Note buyers will consider buying it for a lump sum based on the payment stream, the property behind it, and the paperwork.

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Kinds of real estate notes

Type	What secures it	Note
Residential mortgage note	Mortgage on a home	Most common for private sellers
Deed of trust note	Deed of trust (trustee holds title as security)	Used instead of a mortgage in many states
Commercial property note	Lien on a commercial building	Buyers review leases, income and property condition
Land note	Lien on vacant land	Value depends heavily on the land's marketability
Land contract	Seller keeps title until paid	See land contract guide

What buyers typically check

The property's current value, often through a broker price opinion or appraisal.
A title search, to confirm lien position and look for anything recorded ahead of you.
The borrower's payment history and, sometimes, credit.
The note's terms: balance, rate, payment, maturity, any balloon.
Your documents and any assignments since the note was created.

Why the price is usually below the balance

The buyer is paying cash today for money they'll collect over years, and taking on the risk that payments stop. They price the note to earn a return that fits that risk. Our pricing guide walks through the math, and the estimator lets you try it with your own numbers.

Commercial and larger notes

Notes on commercial buildings, or several notes at once, usually get a deeper review, but the request starts the same way: share the basics and the property type.

Questions

Is a deed of trust note harder to sell than a mortgage note?

Not usually. Deeds of trust and mortgages do the same job. Buyers are used to both.

Can I sell a second-lien real estate note?

Yes, though second liens usually carry a bigger discount because the first lien gets paid first if the property is sold or foreclosed.

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