Your borrower stopped paying on a residential property. The note is non-performing. And you are ready to convert that problem asset into cash.
TrustedNoteBuyer.com buys residential non-performing notes across all 50 states. We buy single-family homes, two to four unit properties, condos, and townhomes. We buy single notes and entire portfolios. And we pay cash — fast, fairly, and with zero fees.
You do not have to fund a lengthy foreclosure. You do not have to manage a delinquent borrower from a distance. You do not have to carry the risk and expense of a default that is costing you more every month.
You can sell now. Get your cash. Move on.
What is a residential non-performing note?
A residential non-performing note is a mortgage note, deed of trust, land contract, or seller carryback note secured by a residential property where the borrower has stopped making payments. Most buyers define non-performing as 90 or more days past due. However, it also includes notes where the borrower has received a formal notice of default or where foreclosure proceedings have already started.
Residential non-performing notes are the most common type of distressed note in the secondary market. They exist across every state, every neighborhood, and every loan size. Furthermore, they are the note type that TrustedNoteBuyer.com purchases most frequently — which means our evaluation process is fast, our pricing is competitive, and our closing timeline is efficient.
Your residential non-performing note still has real value
This is the most important thing to understand. A non-performing residential note is not worthless. It is distressed — and there is a meaningful difference.
The value of a non-performing residential note depends primarily on the real property securing it. As long as there is equity in that property, there is real value in your note. Furthermore, residential properties are the most liquid collateral type in the note market. They are easy to value. They are straightforward to sell or rent after resolution. And they attract the widest pool of buyers in the secondary market.
Therefore, a non-performing residential note is a problem asset that can be converted into guaranteed cash — often faster than the seller expects.
Types of residential non-performing notes we buy
TrustedNoteBuyer.com purchases every type of residential non-performing note. Your property type does not limit your options.
Single-family home notes
Single-family residential properties are the most common collateral type in the non-performing note market — and the type that produces the strongest offers. They are liquid, easy to value, and straightforward to resolve. We purchase single-family home notes at every stage of default — from the first missed payment through active foreclosure and bankruptcy proceedings.
Two to four unit residential property notes
We purchase non-performing notes secured by duplexes, triplexes, and four-plexes. These properties are classified as residential for lending purposes — but they carry additional considerations related to tenant occupancy and rental income status. Our team evaluates them on both a property value basis and an income basis — giving you a fair, comprehensive offer.
Condo and townhome notes
We buy non-performing notes secured by condominiums and townhomes across all 50 states. Condo notes require attention to HOA status — unpaid HOA assessments can create senior liens that affect the overall equity position. We evaluate HOA status carefully and factor it accurately into every offer.
Vacation and second home notes
We purchase non-performing notes secured by vacation properties and second homes. These properties sometimes require additional evaluation because they are in seasonal markets or have limited year-round liquidity. However, when the LTV is strong, vacation home notes receive competitive offers.
Mobile home and manufactured home notes
We buy non-performing notes secured by manufactured homes — both on owned land and in parks. These notes require specialized evaluation because the collateral classification differs from traditional real property in many states. Our team understands those differences and evaluates manufactured home notes accurately.
Owner financed and seller carryback residential notes
We purchase non-performing owner financed notes and seller carryback notes secured by residential properties. These are among the most common private notes in the secondary market. Furthermore, they frequently come with documentation challenges — and our team has extensive experience resolving them efficiently.
Why residential non-performing notes receive the strongest offers
Residential properties produce the strongest offers in the non-performing note market for several specific reasons.
Liquidity
Residential properties sell faster than commercial properties, vacant land, or industrial assets. A buyer who acquires a non-performing residential note knows they can resolve the default and sell or rent the property relatively quickly. That liquidity reduces risk — and stronger offers reflect lower risk.
Valuation clarity
Residential properties are easier to value accurately than commercial or industrial assets. A quick comparable sales analysis gives a reliable picture of market value. Consequently, buyers have more confidence in the collateral value — which translates into stronger offers.
Deep buyer pool
If a residential property goes through foreclosure, there is a large pool of potential buyers — owner-occupants, investors, and rental operators — ready to acquire it. That deep buyer pool reduces the risk that a foreclosure auction produces a disappointing result. Therefore, buyers factor that depth into their pricing.
Established resolution processes
The legal and operational processes for resolving residential note defaults are well-established and well-understood. Buyers know exactly what steps are required, what costs to expect, and how long the process takes in every state. That predictability reduces uncertainty — and uncertainty is what drives discounts in the note market.
How we price residential non-performing notes
Our evaluation process for residential non-performing notes is rigorous, logical, and transparent. Here is exactly what we look at.
Loan-to-value ratio
The LTV is the single most important pricing factor. We compare the outstanding loan balance to the current market value of the property. A low LTV means strong equity and a stronger offer. A high LTV means thin equity and a deeper discount.
A simple example. A $140,000 remaining balance on a property worth $220,000 produces an LTV of 64 percent — a strong equity position that supports a competitive offer. A $195,000 balance on a $210,000 property produces an LTV of 93 percent — thin equity that requires a deeper discount.
State foreclosure timeline
Every state handles foreclosure differently. Slow judicial foreclosure states — like New York, New Jersey, and Florida — add years of legal costs and timeline risk. Fast non-judicial states — like Texas, Georgia, and Missouri — allow faster resolutions and produce stronger offers. This single factor can move an offer by 10 to 20 percentage points.
Property condition
A well-maintained residential property is worth more than a neglected one. A vacant property raises concerns about deterioration and vandalism. And a property with deferred maintenance introduces uncertainty about what the buyer will inherit after resolution. Be honest about the property condition when you submit. It helps us give you the most accurate offer.
Stage of default
Early-stage defaults give us more flexibility in pursuing resolution options — loan modifications, repayment plans, or deed in lieu arrangements — before resorting to foreclosure. Later-stage defaults give us legal clarity and a more defined path forward. Both stages produce competitive offers when the LTV is strong.
Documentation completeness
Complete, organized documentation reduces uncertainty. And in residential note transactions — particularly owner financed ones — documentation quality varies significantly. Having your documents ready before you submit always produces faster offers and often produces stronger ones too.
How to sell your residential non-performing note — step by step
Step 1 — Gather your documents
Before reaching out, organize your core documents. Gather the original promissory note, the deed of trust or mortgage, a complete payment history showing every missed payment, any recorded notices of default or foreclosure filings, and basic property information including a current value estimate.
If your note involves a bankruptcy, include copies of the bankruptcy petition, the automatic stay notice, and any related court orders. Complete documentation on day one produces the fastest offers and the strongest pricing.
Step 2 — Contact TrustedNoteBuyer.com
Reach out through our online form or speak directly with our team. Share the property address, unpaid principal balance, original loan terms, current default status, and property type. Be transparent about every aspect of the situation — the delinquency history, any legal proceedings, and any documentation gaps.
Transparency upfront produces the most accurate offer. It also prevents delays during due diligence. And our team can often suggest solutions for common documentation issues before the evaluation begins.
Step 3 — Receive your written cash offer
After reviewing your note and evaluating the collateral, we present a written cash offer within two to three business days. The offer is a specific dollar amount — the cash you receive at closing. No fees are deducted. No commissions are charged.
We explain every offer clearly. We walk you through the LTV, the state, the property type, and every other factor that drove the number. You always know where you stand and why. There is no obligation to accept. Take the time you need.
Step 4 — Accept and complete due diligence
Once you accept, due diligence begins immediately. We review your documents in detail — confirming the loan terms, verifying the collateral value, checking the lien position, and identifying any title issues.
Due diligence typically takes one to two weeks with complete documentation. Respond promptly to every request. The faster you respond, the faster you close.
Step 5 — Close and receive your funds
Closing is handled through a licensed title company or escrow agent. You sign the transfer documents. We fund the transaction. Your cash is wired directly to your bank account on closing day.
After closing, the note is ours. We take over the borrower relationship, all collection activity, and all legal proceedings. You walk away with cash and zero further obligations.
The entire process takes two to four weeks in most cases.
We buy residential non-performing note portfolios
Holding multiple residential non-performing notes? Or a mixed portfolio of performing and non-performing residential notes?
You can sell everything in a single transaction.
TrustedNoteBuyer.com purchases residential non-performing note portfolios of all sizes. We buy two notes or two hundred notes in one closing. We handle performing and non-performing notes together. We buy notes in foreclosure and bankruptcy alongside current notes. And we work across all 50 states.
Portfolio sales close everything simultaneously. You deal with one buyer through one streamlined process. And you free up all of your capital at once.
Frequently asked questions
What residential property types do you buy non-performing notes on?
We purchase non-performing notes secured by single-family homes, two to four unit properties, condos, townhomes, vacation homes, manufactured homes on owned land, and owner financed residential properties — across all 50 states.
How much will I receive for my residential non-performing note?
Residential non-performing notes typically sell at 40 to 70 cents on the dollar. The exact offer depends primarily on the LTV, the state, the property condition, and the stage of default. Submit your note for a free evaluation to get your specific number.
Can I sell a residential non-performing note already in foreclosure?
Yes. We purchase residential notes at every stage of the foreclosure process — including active judicial and non-judicial proceedings in any state.
Do you buy residential notes where the borrower filed for bankruptcy?
Yes. We purchase residential non-performing notes in bankruptcy situations across all 50 states — Chapter 7, Chapter 13, and Chapter 11.
Do I need an attorney to sell my residential non-performing note?
You do not need an attorney to complete the sale. However, if your note is in active foreclosure or bankruptcy proceedings, inform your attorney so the legal process can be properly paused or transferred.
Does TrustedNoteBuyer.com buy residential non-performing notes in all 50 states?
Yes. We purchase residential non-performing notes across all 50 states — single notes and portfolios, all residential property types, all stages of default.
The bottom line
TrustedNoteBuyer.com buys residential non-performing notes across all 50 states. All residential property types. All stages of default. Single notes and portfolios of any size.
No fees. No brokers. No obligation. Fast offers and faster closings.
Ready to sell your residential non-performing note? Get your free offer at TrustedNoteBuyer.com today.