Selling Mortgage Notes: How to Sell a private mortgage note



If you’re a note holder, you’ve probably heard of selling mortgage notes and you may think that to sell a private mortgage note is a challenge. There are a lot of factors to consider, such as the borrower’s creditworthiness, the value of the property, the terms of the loan, and the seasoning of the note.

But don’t worry, we’re here to help. In this blog post, we’ll walk you through the process of how to sell a private mortgage note. We’ll cover everything from finding a buyer to negotiating the terms of the sale.

Finding the Right Mortgage Note Buyer:

The first step is to find a buyer for your note. There are several ways to do this, including:

  • Online marketplaces: There are several online marketplaces where you can list your notes for sale. These marketplaces allow you to reach a large audience of potential buyers.
  • Direct marketing: You can also market your notes directly to potential buyers. This could involve sending out mailers or making cold calls.
  • Referrals: If you know someone who is interested in buying notes, ask them for a referral.
  • But probably the best way to sell a private mortgage is to let our note buyers, with over 30 years of experience, help you now. Just click here and fill out our short form to get started.

Negotiating the Terms of the Sale:

Once you’ve found a buyer, you’ll need to negotiate the terms of the sale. This includes the price, the due diligence period, and the number of payments purchased.

The price of the note will depend on a number of factors, such as the borrower’s creditworthiness, payment history, the value of the property, the terms of the loan, and the seasoning of the note.

Make sure you are dealing with honest and experienced note buyers when negotiating purchase options. Check the note buyer’s testimonials and Google reviews. You may check out our testimonials here and our Google reviews here.

Due Diligence:

Once you agree on a sales price, the note buyer will prepare a Mortgage Purchase Agreement (MPA). When you sign and return the MPA, the note buyer will begin due diligence. When we buy a mortgage note, we pay for all due diligence. That is not true for all note buyers. The due diligence includes:

  • Credit report on the borrower
  • Appraisal or BPO to verify property value
  • Title search to ensure clean title
  • Review of the payment history

Closing the Sale:

Once due diligence is complete, it is time to close the sale. This involves transferring the ownership of the note from the seller to the buyer.

The buyer will prepare the closing package, including the assignment of note & mortgage and your wiring instructions for your bank account.

  1. You will sign the assignment, fill out the wiring instructions and surrender the original promissory note.
  2. The seller will wire transfer the agreed upon sales amount into your bank account.
  3. The buyer will record the note assignment with the county recorder.


To sell your private mortgage note can be a challenge, but it’s possible. By following the tips in this blog post, you can increase your chances to sell your private mortgage note for a fair price.

Let Us Help You Weigh All Of Your Options Before You Sell Your Note.

When you are deciding if I really want to sell my mortgage note, be sure to talk to our Mortgage Note Buyers…  at 772-232-2383 

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