We Buy Non-Performing Real Estate Notes

Here’s Exactly How It Works

If you are holding a real estate note and the borrower has stopped paying, you have probably already searched for a buyer. You may have found a long list of companies all claiming to offer the best price. Some are direct buyers with real capital. Others are brokers who will shop your note, collect a margin, and leave you with less money and more waiting.

Trusted Note Buyer is a direct buyer. We purchase non-performing real estate notes with our own capital, make decisions in-house, and close without the delays that come with broker chains. This post explains who we are, exactly what we buy, how our offer process works, and what you can realistically expect when you sell your non-performing note to us.

We Buy Non-Performing Real Estate Notes — get a fast quote and close in days, not months.

If you are ready to skip straight to a number, you can submit your note details and receive a no-obligation cash offer within 48 hours. If you want to understand the process first, keep reading.

Who We Are and Why It Matters

The non-performing note market has no shortage of people who claim to be buyers. The reality is that many of them are brokers, wholesalers, or intermediaries who will take your note, show it to their network, collect a spread, and potentially never close the deal at all.

The distinction matters enormously to a seller. When you work with a broker, your note gets shopped to unknown third parties, the timeline extends by weeks or months, and a significant portion of your proceeds goes to a middleman who added no value to the transaction. When you work with a direct buyer, the person who makes you an offer is the person who funds the purchase. There is no chain, no waiting for someone else to approve the deal, and no hidden fees.

Trusted Note Buyer operates as a direct principal buyer. We use our own capital to acquire non-performing real estate notes nationwide. We make all underwriting decisions in-house, which means we can move quickly and we do not need outside approval to close your transaction.

Direct Buyer vs. Broker — The Difference in Practice A broker who finds a buyer for your $100,000 unpaid balance note at $45,000 might collect $3,000 to $7,000 or more as their fee, leaving you with $38,000 to $42,000. A direct buyer who offers $43,000 puts that full amount in your hands at closing. Direct always means more money to you — no middlemen, no markups.

What We Buy: Non-Performing Note Types We Accept

One of the most common frustrations note holders face is contacting a buyer only to discover that their specific note does not fit that buyer’s criteria. We have built our acquisition program to be as broad as possible, because we understand that non-performing notes come in many forms.

Residential Non-Performing Notes

We buy non-performing residential mortgage notes secured by all standard property types, including:

• Single-family homes
• Condominiums and townhomes
• 2–4 unit multi-family properties
• Mobile homes on owned land

Residential notes represent the largest segment of the non-performing note market. Whether your borrower went delinquent 90 days ago or three years ago, we are interested in evaluating the asset. The key factors for us are the property value, the loan-to-value ratio, and the lien position — not the length of the delinquency alone.

Commercial Non-Performing Notes

We purchase non-performing commercial real estate notes secured by income-producing and owner-operated properties, including:

• Office buildings and professional space
• Retail strip centers and standalone retail
• Industrial and warehouse properties
• Mixed-use properties with commercial and residential components
• Hospitality assets including small hotels and motels

Commercial non-performing notes are more complex to underwrite than residential, but they often carry higher equity positions and the potential for stronger recovery outcomes. We evaluate each commercial note on its own merits.

First and Second Position Notes

We acquire both first position (senior lien) and second position (junior lien) non-performing notes, though our pricing reflects the difference in risk between the two.

First position notes give the holder the primary claim to the underlying property in foreclosure, making them the more valuable and more easily priced asset. We are active buyers of first position non-performing notes in all markets.

Second position notes carry more risk because a first lien foreclosure can wipe out the junior interest. We still buy second position non-performing notes, but we underwrite them carefully, and our offers reflect the added complexity. If you hold a second position note, provide us with the details on the first lien — its balance, current status, and whether it is also delinquent — so we can evaluate the full picture accurately.

Notes in Active Foreclosure

You do not need to wait for a foreclosure to complete before selling. We buy non-performing notes at every stage of the process — pre-foreclosure, mid-process, and post-judgment. In some cases, an active foreclosure actually provides useful information about the borrower’s situation and the timeline to resolution, which helps us underwrite more confidently.

Non-Performing Note Portfolios

If you are a private lender, community bank, credit union, family office, or investment fund looking to liquidate a book of non-performing loans, we purchase portfolios of any size. Whether you have 3 loans or 300, we have the capital and the infrastructure to evaluate your loan tape and close efficiently on a bulk acquisition. Portfolio sellers benefit from a single transaction, a single closing, and a faster overall timeline than trying to sell loans one at a time.

Not Sure If Your Note Qualifies? Submit your note details and let us tell you. We review every submission and will give you a straight answer on whether we can make an offer — typically within one business day. There is no fee for the evaluation and no obligation to accept any offer we make.

How We Price Non-Performing Notes: Transparent and Straightforward

We believe note sellers deserve to understand how buyers arrive at their offers. The note market has a reputation for opacity, and we think that serves no one well. Here is a plain-language explanation of how we price non-performing notes.

The Starting Point: Unpaid Principal Balance

Every offer we make starts with the unpaid principal balance (UPB) — the amount the borrower still owes on the loan. This is the face value of the note. Our offer will be expressed as a percentage of the UPB, commonly called cents on the dollar. Non-performing notes typically trade between 15 and 65 cents on the dollar depending on the factors below.

The Five Factors That Drive Our Offer

After reviewing your note submission, here is what our underwriting team evaluates:

1. Property value and equity. We order or estimate a current market value for the collateral property. The loan-to-value ratio — what the borrower owes versus what the property is worth — is the single most important pricing input. A note with strong underlying equity provides security and exit options that allow us to offer more.
2. Lien position. A first position note gives us the primary claim on the property. A second position note sits behind another lender, which increases risk and reduces the offer. Always know your lien position before approaching any buyer.
3. Property type and location. A single-family home in a stable suburban market is simpler to value and liquidate than a rural commercial property in a declining area. Property type, condition, and market fundamentals all factor into our assessment.
4. Foreclosure timeline in your state. State law governs how long a foreclosure takes and how expensive it is. Non-judicial foreclosure states like Texas and California can see resolution in 60 to 120 days. Judicial foreclosure states like New York and Florida may require two to four years and significant legal fees. This timeline directly affects what a buyer can afford to pay.
5. Borrower status and loan history. A borrower who is 90 days delinquent for the first time presents a different opportunity than one who has been non-paying for three years with a bankruptcy filing and an active dispute. We look at the full payment history and any available information about the borrower’s current situation.

Example: What These Factors Look Like in Practice A first position residential note with a $180,000 UPB, secured by a property valued at $240,000, 120 days delinquent, in a non-judicial foreclosure state with a borrower still occupying the property — this note has strong equity, a manageable foreclosure path, and an active borrower, which means we can offer meaningfully more than we would for a second position note on a vacant property in a judicial foreclosure state with a 3-year delinquency.

Our Process: From First Contact to Cash in Hand

We have streamlined our acquisition process to be as fast and frictionless as possible for sellers. Here is exactly what happens when you submit a note to us.

6. Submit your note details. Use our online submission form or contact us directly. We need the basics to start: property address, unpaid principal balance, lien position, last payment date, and your contact information. For portfolios, send us your loan tape — a spreadsheet with one row per loan. The more information you provide upfront, the faster we move.
7. Receive a preliminary offer within 48 hours. Our underwriting team reviews your submission and comes back to you with a preliminary offer, typically within one to two business days. This offer is based on the information you have provided and remains subject to due diligence, but it gives you a real number to evaluate before committing to anything.
8. We complete due diligence. If the preliminary offer is in range for you, we move into a short due diligence period. We order a property valuation, review the original note and security documents, verify the payment history, check the title, and assess the foreclosure status if applicable. For a single residential note this typically takes 7 to 14 days. For portfolios, allow 2 to 4 weeks depending on the size.
9. We issue a final offer. Once due diligence is complete, we present a final offer. This is the number we will close on. You are free to accept, decline, or negotiate. We will not pressure you and we will not change the number at the last minute — what we offer after due diligence is what we pay at closing.
10. Closing. Once you accept our offer, we coordinate closing through a title company or closing attorney. The assignment of the note and security instrument is prepared, executed, and recorded. You receive your funds by wire transfer. From acceptance to funding typically takes 5 to 15 business days. Total timeline from first contact to cash in hand: as fast as 15 business days for a well-documented single note, 30 to 45 days for more complex situations or portfolios.

No Upfront Fees — Ever We cover the cost of due diligence, including property valuations and title work. You will never be asked to pay anything before closing. If we are unable to close the transaction after due diligence, you owe us nothing. Our only revenue comes from the notes we successfully purchase.

Why Note Holders Sell to Us Instead of Waiting

Every seller we work with has asked themselves the same question: is it worth selling now, or should I wait for the situation to resolve? It is a fair question, and the honest answer depends on your specific circumstances. But there are real costs to holding a non-performing note that are easy to underestimate.

The ongoing cost of a non-performing note

While you wait, the clock is running. Monthly loan servicing fees continue regardless of whether the borrower pays. Legal fees for foreclosure can reach tens of thousands of dollars in many states, and the process can take years. The property securing your note may be deteriorating without maintenance. Carrying costs accumulate month after month with no offsetting income.

Most note holders who contact us have been sitting on a non-performing loan for six months to two years before reaching out. By that point, the servicing costs, stress, and legal exposure have often exceeded what a faster sale would have cost them in discount.

The value of certainty

When you sell your non-performing note to us, you receive a specific dollar amount on a specific date. There is no waiting to see how the foreclosure plays out, no hoping the borrower reinstates, no relying on a court timeline that has already been delayed three times. For most sellers, the certainty of a lump sum today is worth considerably more than the theoretical recovery of waiting years for an uncertain outcome.

Freeing up capital

Every dollar tied up in a non-performing note is a dollar that cannot be deployed elsewhere. Private lenders, banks, and investment funds often hold non-performing paper not because they want to, but because they have not prioritized the sale. Liquidating even a handful of problem loans can release meaningful capital for new originations, acquisitions, or other opportunities with a better risk-adjusted return.

What We Need From You to Make an Offer

The faster you provide complete information, the faster we can get you a number. Here is what helps us move quickly:

• The original promissory note and the mortgage or deed of trust
• A complete payment history showing all payments received and the date of last payment
• The current unpaid principal balance
• The property address and county of recording
• Your estimate of the current property value, or any recent appraisal or BPO if available
• Any loan modification agreements, forbearance agreements, or amendments to the original terms
• Information about any foreclosure filings, including state and current stage
• Any bankruptcy filings by the borrower, if applicable

For portfolio submissions, all of the above is organized into a loan tape — a spreadsheet with one row per loan. We can provide a standard loan tape template if you need a starting point.

You do not need perfect documentation to receive an offer. Imperfect or incomplete loan files are common in the non-performing note market, and we have experience working with situations where documentation is less than ideal. Disclose what you know and we will work with what we have.

We Buy Notes Nationwide — All 50 States

We purchase non-performing real estate notes in every state. Geography does not limit what we can buy, though it does affect pricing. State foreclosure law is one of the most significant variables in non-performing note valuation because it determines how long and how expensive the path to resolution will be.

Non-judicial foreclosure states — where a lender can foreclose without going through the court system — tend to produce faster and less expensive resolutions. States like Texas, Georgia, California, Arizona, and Colorado generally fall into this category. These states typically command stronger offers because a buyer faces less legal risk and a shorter hold period.

Judicial foreclosure states require lenders to file a lawsuit and obtain a court judgment before foreclosing. States like New York, New Jersey, Florida, Illinois, and Ohio are among the most time-consuming, with timelines that can stretch two to four years in contested cases. Notes secured by properties in these states sell at steeper discounts to account for the extended timeline and legal costs — but they still sell, and we still buy them.

If you are unsure how your state’s foreclosure process affects your note’s value, ask us. We will walk you through what applies to your specific situation.

We Are Actively Buying Right Now The non-performing note market in 2026 is active, with strong institutional and private demand for distressed loan assets at all collateral levels. If you have been holding a non-performing note and wondering whether now is the right time to sell, the answer is yes — buyers are competing for quality paper and well-documented notes are moving quickly.

Frequently Asked Questions

Do you charge any fees to evaluate my note?

No. We review every note submission at no cost to you. Our due diligence costs — including property valuations and title work — are covered by us. You pay nothing until closing, and only if you choose to accept our offer.

How is your offer different from a broker’s offer?

A broker does not make the offer — they find someone else who will. That means the number a broker quotes you is not guaranteed until a real buyer has reviewed your note and committed. We make our own offers from our own capital. When we quote you a number after due diligence, that is the number we close on.

Will you buy my note if the borrower has filed for bankruptcy?

Yes, we evaluate notes where the borrower has an active or recently discharged bankruptcy. Bankruptcy adds complexity to the foreclosure process, but it does not necessarily prevent a sale. It does affect pricing. Provide us with the bankruptcy case details and we will assess accordingly.

Can you buy a note on a property in very poor condition?

Yes, though the condition of the collateral is a significant pricing factor. A vacant, vandalized, or heavily distressed property reduces the recovery value of the note, which is reflected in a lower offer. We will not refuse to evaluate a note based on property condition alone — tell us what you know about the property and let us price it honestly.

How do I know your offer is competitive?

Shop it. We encourage sellers to get multiple offers before accepting any one of them. The non-performing note market is not completely transparent, which is why we explain how we price notes in detail. If you receive a higher offer that is from a genuine direct buyer after full due diligence, you should take it. Our goal is to be the buyer you choose because our offer, process, and reputation are the best fit — not because you did not know your options.

What if my loan documents have issues or errors?

Documentation problems are common in the non-performing note market, particularly for older loans or seller-financed notes that were not originated through a traditional lender. Missing endorsements, chain of title gaps, and servicing irregularities all affect marketability and value, but they do not automatically prevent a sale. Disclose everything you know. We will identify any material issues during due diligence and price them into our offer rather than use them to retrade after the fact.

Ready to Get an Offer? Here Is How to Start

If you are holding a non-performing real estate note — one loan or a portfolio of loans — we want to hear from you. The process takes minutes to start and costs nothing to explore.

11. Gather your basic note information: unpaid balance, property address, lien position, and last payment date.
12. Submit your details using our online form or call us directly. For portfolios, send your loan tape.
13. Receive a preliminary cash offer within 48 hours, with no obligation attached.
14. If the offer works for you, we handle the due diligence, the closing paperwork, and the wire transfer. You handle nothing except signing at closing.

Submit Your Note Today Trusted Note Buyer purchases non-performing real estate notes nationwide — residential, commercial, first position, second position, single loans, and full portfolios. No broker fees. No upfront costs. Offers in 48 hours. Close in as little as 15 days. Get your offer now.

We Buy Non-Performing Real Estate Notes — stop chasing payments and turn your note into immediate cash.