How to Sell an Owner-Financed Mortgage Note
Selling an owner-financed note takes three steps: share your note details with a note buyer, review the cash offer (you'll have ours within 24 hours), and close in about 3-4 weeks with the funds wired to you. You don't need the borrower's permission, and you don't need to wait until the note is paid off.
If you sold a house, land, or a building and carried the financing yourself, you became the bank. The good news: banks sell loans all the time, and you can too.
Who buys owner-financed notes?
Note investors and note buying companies purchase seller-financed mortgage notes, land contracts, contracts for deed, and deeds of trust in every state. Show Me Notes, operated by Essential Investment Group, is based in Kansas City and has been buying notes nationwide since 2018, purchasing in all 50 states whether your property is across town or across the country.
What do I need before I ask for a quote?
Have three documents on hand:
- Settlement statement from the original sale
- The mortgage instrument (deed of trust, land contract, or real estate contract)
- Payment record showing what the borrower has paid and when
You can start a quote without them, but they're required before closing because every offer is verified against the actual paperwork.
What happens after I submit my note details?
- You get a quote within 24 hours. The offer reflects your note's balance, interest rate, payment history, borrower equity, and the property behind it.
- You decide, with no pressure. Your offer is good for 5 business days, so you have time to think it over. The quote is free, there are no fees, and you can walk away at any point before closing.
- The buyer verifies and closes. Title work, note verification, and paperwork usually take 3-4 weeks. Your cash arrives by wire at closing.
Do I have to sell the whole note?
No. A partial note sale lets you sell a portion of the future payments for cash now and keep the rest of the income stream.
Will my borrower be affected?
Your borrower keeps making the same payments on the same terms. The only change is who receives them. Professional servicing often makes the experience smoother for the borrower, not worse.
Frequently asked questions
Can I sell my note if the borrower is behind on payments?
Yes. Performing and non-performing notes both sell, though a spotty payment history lowers the price. See selling a non-performing note.
How much will I get for my note?
Most notes sell at a discount to the remaining balance, based on risk. See how much is my mortgage note worth for the factors that set the price.
Can I sell a wrap note (wraparound mortgage)?
Yes, with one requirement: the underlying loan must be paid off at closing. Part of the sale proceeds retires the mortgage your note wraps, so the note transfers in senior position, and you receive the balance of the purchase price. Have your underlying loan's payoff statement handy when you request a quote so the numbers are exact.
Is there any cost to get a quote?
No. Quotes are free and carry no obligation.