Selling a mortgage note is different from selling a house. There is no standard price for a note, and two note buyers may evaluate the same mortgage very differently. Just as important, the highest initial offer isn’t always the offer that ultimately closes.
If you’re comparing mortgage note buyers in Florida, look beyond the number on the offer. Experience, communication, due diligence, closing costs, flexibility, and the buyer’s ability to handle problems can all affect the transaction.
American Funding Group has been purchasing private mortgage notes since 1989, including thousands of notes nationwide and many transactions throughout Florida. Based on that experience, here are some practical things I believe a note holder should consider before choosing a buyer.
If you’re looking for information about selling a Florida mortgage note rather than comparing buyers, visit our Florida Note Buyers page.
Step 1: Look for Local Market Knowledge
Florida isn’t one uniform real estate market. A mortgage secured by a condominium in Miami can present very different considerations from a note secured by a single-family home in Orlando, rural acreage in Central Florida, or property along the Gulf Coast.
A note buyer should understand how the property securing the note affects the evaluation. Depending on the property and location, that may include:
- Current property value and available equity
- Property type and condition
- Local marketability
- Insurance or HOA considerations
- Other factors that could affect the collateral securing the note
Why it matters: The mortgage note and the real estate securing it have to be evaluated together. Ask a prospective buyer about their experience purchasing notes secured by Florida real estate and how the property will factor into their evaluation.
At American Funding Group, we’ve purchased Florida mortgage notes for many years, involving different property types and situations throughout the state. That experience helps us know what questions to ask before making a purchase decision.
Step 2: Check Experience and Track Record
Mortgage notes can look straightforward until a problem appears during due diligence. That’s when a buyer’s experience can make a real difference.
Before choosing a note buyer, look for evidence that the company has actually completed transactions over a meaningful period of time. Consider:
- How long the company has been purchasing mortgage notes
- Reviews and testimonials from actual note sellers
- BBB accreditation and rating, along with other independent business information
- Experience with both straightforward and more complicated transactions
- Whether you can identify the people behind the company and speak directly with someone knowledgeable about your note
Don’t rely only on what a company says about itself. Look for independent evidence, including BBB information, Google reviews, and other customer feedback, that supports its claims.
American Funding Group has been purchasing private mortgage notes since 1989. Over that time, we’ve purchased thousands of notes, including performing notes as well as transactions involving documentation problems, inherited notes, divorce situations, delinquent payments, and other complications.
Why it matters: A note buyer’s experience may matter most when something unexpected turns up. Before accepting an offer, make sure you’re comfortable not only with the price, but also with the people responsible for getting the transaction to closing.
Step 3: Compare Cash Offers — But Look Beyond the Number
Naturally, the amount you’re offered matters. But when comparing offers from mortgage note buyers, make sure you’re comparing the actual terms of the offers, not just the headline numbers.
An initial offer may change after the buyer verifies the payment history, property value, title, note documents, or other information. A change isn’t necessarily a warning sign—sometimes due diligence uncovers information that wasn’t available when the preliminary offer was made. What matters is whether the buyer explains the reason clearly and deals with you fairly.
Before accepting an offer, ask:
- Is this a preliminary offer or a firm purchase price?
- What information still needs to be verified?
- Who pays for the appraisal or valuation, title work, document preparation, recording, and other closing costs?
- Under what circumstances could the offer change?
- Approximately how long should the due diligence and closing process take?
- Am I obligated to sell simply because I accepted the initial offer?
At American Funding Group, we explain how we arrived at our offer and what still needs to be verified. We don’t charge note sellers upfront fees, and in transactions we purchase, we generally cover the normal costs associated with our due diligence and closing.
Why it matters: A slightly higher preliminary offer isn’t necessarily better if the terms are unclear or significant costs will later be deducted. Compare the entire transaction—not just the first number you receive.
Step 4: Understand the Closing Process
Before choosing a mortgage note buyer, ask what happens after you decide to move forward. A professional buyer should be able to explain the process in plain English so you know what will be required from you and what the buyer will be doing behind the scenes.
Depending on the transaction, the buyer may need to:
- Review the original promissory note and mortgage or deed of trust
- Verify the payment history and current balance
- Evaluate the property securing the note
- Order and review title work
- Resolve documentation or servicing questions
- Prepare the documents needed to transfer the note and lien
- Coordinate the closing and funding
Ask who will keep you informed during this process and whether you’ll have a specific person you can contact when you have a question.
At American Funding Group, most transactions are completed in about four weeks, although straightforward transactions can sometimes close sooner and complicated transactions may take longer. We keep the note holder informed as the transaction moves through due diligence and closing.
Why it matters: An experienced buyer should be able to tell you what happens between accepting an offer and receiving your money. If the process is vague before you start, it probably won’t become clearer after you’ve committed to the transaction.
Step 5: Look for Flexibility
Selling the entire mortgage note isn’t always the best solution. Before choosing a note buyer, make sure the buyer is willing to understand what you’re trying to accomplish rather than simply assuming you should sell all of your remaining payments.
Depending on your situation, your alternatives may include:
- Selling the entire note for a lump sum
- Selling only a portion of the future payments and keeping the remainder
- Structuring a partial sale around a specific amount of cash you need
- Continuing to hold the note if selling doesn’t make financial sense for you
A partial sale can sometimes provide the cash you need today while allowing you to retain some of the future income from the note.
At American Funding Group, we start by asking what the note holder is trying to accomplish. Once we understand that, we can evaluate the note and explain the full-sale and partial-sale alternatives. Sometimes, after looking at the numbers, continuing to hold the note may be the better choice.
Why it matters: The purpose of evaluating your note shouldn’t simply be to persuade you to sell it. It should be to give you enough information to decide which alternative makes the most sense for your situation.
Step 6: Review the Agreement and the Buyer’s Professionalism
Before signing an agreement to sell your mortgage note, take the time to understand what you’re agreeing to. A professional note buyer should be willing to explain the purchase agreement and answer your questions without pressuring you to make an immediate decision.
Pay particular attention to:
- The purchase price and exactly what payments are being sold
- Whether the agreement is for a full or partial purchase
- Any conditions that must be satisfied before closing
- Whether you will be responsible for any costs or fees
- What documentation you’ll be expected to provide
- What happens if the buyer’s due diligence uncovers a problem
The buyer’s behavior before you sign can also tell you something about what the transaction may be like afterward. Are your questions answered clearly? Can you reach the person handling your transaction? Are changes to the offer explained rather than simply presented to you?
At American Funding Group, we provide a written Mortgage Purchase Agreement when a note holder decides to move forward. We encourage sellers to ask questions and understand the transaction before signing.
Why it matters: A mortgage note can represent a substantial financial asset. You should understand both the offer and the agreement before deciding whether to sell.
Step 7: Choose Trust Over Short-Term Gains
A mortgage note may represent years of future payments and a significant part of your financial assets. Choosing a buyer shouldn’t come down to a single number or a polished sales presentation.
Pay attention to how the buyer deals with you throughout the evaluation process. A trustworthy mortgage note buyer should:
- Explain how the note is being evaluated
- Answer your questions in plain English
- Tell you what still needs to be verified before closing
- Keep you informed as the transaction progresses
- Explain any changes that occur during due diligence
- Give you enough information to make your own decision without unnecessary pressure
At American Funding Group, one of the principles we’ve followed since 1989 is simple: we do what we say we’re going to do. That means communicating clearly, dealing with problems when they arise, and keeping the note holder informed from the initial evaluation through closing.
You don’t have to take our word for it. You can read reviews from note holders we’ve worked with and see how we handled an actual Florida mortgage note transaction from the initial conversations through closing. Our Real-Life Mortgage Note Story shows what happened during the transaction and what the note seller said about working with American Funding Group.
Why it matters: You’re not simply choosing an offer. You’re choosing the people who will be responsible for turning that offer into a completed transaction.
📞 Call (772) 232-2383 or Get My Note Quote Now
Final Thoughts
Choosing a mortgage note buyer isn’t just about finding someone willing to make an offer. You’re choosing the company and the people who will evaluate a significant financial asset, perform the due diligence, work through any problems that arise, and ultimately get the transaction closed.
Take the time to understand the offer, ask questions about the process, check the buyer’s experience and reputation, and make sure you’re comfortable with the people you’ll be working with.
At American Funding Group, we’ve been purchasing private mortgage notes since 1989. If you’d like us to evaluate your Florida mortgage note, we’ll explain what we see, answer your questions, and discuss the alternatives available to you. There’s no obligation to sell.
For a broader explanation of selling a note in Florida, visit our Florida Note Buyers page.