By Trusted Note Buyer | (310) 909-3360 | trustednotebuyer.com
If your borrower has stopped making payments, you already know the stress that comes with holding a non-performing note. The calls that go unanswered. The uncertainty about whether you’ll ever see your money. The question everyone in your position eventually asks: can I even sell this thing?
The answer is yes — and you may be surprised at how much your non-performing note is worth.
What Is a Non-Performing Mortgage Note?
A non-performing note is a real estate loan where the borrower has stopped making payments — typically defined as 90 days or more past due. Non-performing notes can be secured by residential properties, commercial properties, vacant land, or multi-unit buildings. They include:
- First and second position mortgages
- Deeds of trust
- Seller-financed loans
- Notes where the borrower has filed for bankruptcy
- Notes tied to properties in foreclosure
Many note holders assume a non-performing note is worthless. That’s not true. Real estate note buyers — including Trusted Note Buyer — purchase non-performing notes every day at prices that reflect the underlying collateral value, the borrower’s situation, and the path to resolution.
Why Would Anyone Buy a Non-Performing Note?
Non-performing note buyers specialize in working through exactly the situations that most note holders can’t manage on their own. When an experienced note buyer acquires a non-performing loan, they have the tools, legal resources, and expertise to:
- Work out a loan modification with the borrower
- Complete a foreclosure and take ownership of the property
- Negotiate a deed-in-lieu of foreclosure
- Sell the underlying property and recover principal
For the note seller, this means there’s a real market for non-performing paper — you just need to find the right buyer.
What Affects the Value of a Non-Performing Note?
Several factors determine what a note buyer will pay for a non-performing loan:
1. The property value (collateral) This is the single biggest driver of value. If the property securing the note is worth significantly more than the loan balance, the note has strong value regardless of payment history.
2. The loan-to-value ratio (LTV) A non-performing note with a 40% LTV — meaning the loan balance is only 40% of the property’s value — is worth far more than one at 90% LTV. Lower LTV = more equity cushion for the buyer.
3. The borrower’s situation Is the borrower unresponsive or cooperative? Have they filed bankruptcy? Are they still occupying the property? Each scenario affects the time and cost to resolve the loan.
4. Property type and location Residential single-family properties in strong markets are easier to value and liquidate. Commercial properties, vacant land, and properties in declining markets carry more risk — but can still be sold.
5. Position (first vs. second lien) First position notes have priority over all other liens in foreclosure. Second position notes carry more risk and are priced accordingly.
6. Documentation A well-documented note — original note, deed of trust, title policy, payment history — commands a higher price than one with missing paperwork.
How the Process Works: Selling Your Non-Performing Note
Selling a non-performing note is simpler than most people expect. Here’s how it works with Trusted Note Buyer:
Step 1: Contact us with the basics We need a few pieces of information to provide an initial offer: the property address, the approximate loan balance, the property type, and the current payment status. You can reach us at (310) 909-3360 or through trustednotebuyer.com.
Step 2: Receive a fast cash offer We evaluate your note quickly — typically within 24 to 72 hours — and provide a no-obligation cash offer. No waiting months for a decision.
Step 3: Accept and close If you accept the offer, we handle all the paperwork and legal transfer. There are no fees to sellers and no closing costs deducted from your offer. You receive the amount we agreed to.
That’s it. Most transactions close within 30 days or less.
Common Questions About Selling Non-Performing Notes
Can I sell a note that’s in foreclosure? Yes. We buy notes that are in active foreclosure. In many cases, the foreclosure process is already underway — which can actually make the note easier to value because the resolution timeline is clearer.
Can I sell a note where the borrower filed bankruptcy? Yes. We purchase notes where the borrower has filed Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Bankruptcy adds complexity, but it doesn’t make a note unsellable — especially when there is equity in the underlying property.
Do I need the original paperwork? Having the original note, deed of trust, and payment history speeds up the process and typically results in a higher offer. If some documentation is missing, contact us — we work through these situations regularly.
Will I get full face value? Non-performing notes sell at a discount to the outstanding balance — this is standard and reflects the risk and cost the buyer takes on to resolve the loan. However, the discount is often less than people expect when the property has strong collateral value.
What types of properties do you buy notes on? We buy notes secured by single-family homes, multi-family properties (1-4 units and larger), commercial real estate, vacant land, condos, and mixed-use buildings — across all 50 states.
Why Sell Your Non-Performing Note Instead of Waiting?
Holding a non-performing note is not a passive investment. Every month that passes without resolution is a month you’re:
- Not earning interest income
- Potentially watching the property deteriorate
- Accruing legal costs if foreclosure becomes necessary
- Carrying the stress and uncertainty of an unresolved situation
Selling converts a problem asset into immediate cash — cash you can redeploy into performing investments, use for other purposes, or simply keep without the headache.
About Trusted Note Buyer
Trusted Note Buyer is a nationwide real estate note buying firm with $500 million in capital ready to deploy. Our principal, Ryan Manavi, is a licensed real estate broker with extensive experience in distressed assets, non-performing notes, and complex transactions. Our team brings over 100 years of combined experience and has purchased virtually every type of real estate note across the country.
We are verified on BiggerPockets — the largest real estate investing community in the United States — where real estate investors and note holders can review our credentials, read about our services, and connect with us directly.
We buy performing and non-performing mortgage notes, deeds of trust, seller-financed loans, foreclosure notes, and bankruptcy notes — residential and commercial — from single notes to institutional portfolios, across all 50 states.
No fees. No pressure. Fast, transparent closings.
📞 (310) 909-3360 🌐 trustednotebuyer.com
Trusted Note Buyer — Nationwide Real Estate Note Buyer | Performing & Non-Performing Notes | Mortgage Notes | Deeds of Trust | Seller Financing | Foreclosure Notes | Bankruptcy Notes | Single Notes to Institutional Portfolios