You can sell your real estate note by submitting your current loan terms to a reputable note broker who connects you with vetted private and institutional buyers. You choose between selling all future payments for maximum cash now or selling a specific portion of payments to keep future income. The transaction closes through an escrow company with funds wired directly to you.
Will my borrower need to approve the sale or be notified?
In standard promissory notes, borrower consent is not required because the note holder has the right to transfer or assign the debt instrument. The borrower's loan terms, interest rate, payment amount, and maturity schedule remain unchanged. However, servicing transfer notices are routinely and legally sent to the borrower so they know the correct servicing entity or address for ongoing monthly payments.
Why is a note discounted when sold?
Notes are discounted because money received today is worth more than money received 15 or 30 years in the future (the time value of money). Note buyers also factor in inflation, servicing costs, and credit risk. If your note pays 6% interest but current market investors require an 9%–11% yield, the purchase price is discounted to deliver that yield. To minimize discount, note holders often choose a partial note sale.
How long does the entire selling process take?
Initial evaluations take 24–72 business hours. Once an agreed-upon buyout price is accepted, full closing typically takes 2 to 4 weeks. This timeframe allows the title company to complete a title search, verify clear lien priority, obtain a drive-by property valuation, and prepare assignment paperwork.
What if I lost my original promissory note?
Losing the physical paper happens. Most buyers and title companies can accommodate a lost note through a signed and notarized Lost Note Affidavit and indemnity agreement, provided the county-recorded Mortgage or Deed of Trust is verified in public records.
Do I have to pay any upfront fees?
No. Our note evaluation is 100% free. Legitimate note buyers and brokerages do not charge application fees, evaluation fees, or upfront due diligence fees. Customary title, appraisal, and document preparation costs are paid by the purchaser at closing.
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