Selling mortgage notes

Assignment of mortgage and the chain of assignment

Updated 2026-10-19

An assignment of mortgage (or assignment of deed of trust) is a recorded document that transfers the security interest in a property from one note holder to the next. The chain of assignment is the unbroken series of those transfers, from the original lender to the current holder. When you sell a note, you sign an assignment to the buyer, and buyers check that every earlier link is in place.

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What the assignment does

A note sale moves two things. The note (the debt) moves by endorsement, on the note itself or on an allonge. The security instrument (the mortgage or deed of trust) moves by assignment, which is recorded with the county so the public record shows who holds the lien.

A typical assignment names the current holder (assignor) and the new holder (assignee), identifies the recorded mortgage or deed of trust by date, parties and recording number, includes the property's legal description or address, and is signed and notarized.

How the chain of assignment works

Every time the note has been sold, there should be a matching endorsement and a matching assignment. Picture a note that started with the seller of a house and has changed hands twice:

Original lender (the home seller) to Buyer A: endorsement plus assignment, recorded.
Buyer A to Buyer B: endorsement plus assignment, recorded.
Buyer B to the next buyer at closing: endorsement plus assignment, recorded after closing.

If any step is missing, the record doesn't line up with who actually holds the note. Buyers call that a broken chain.

Why buyers care

The holder may need to show it has the right to enforce the note and the lien, especially in a foreclosure.
Title companies look at the recorded chain when the property is later sold or refinanced and the lien is paid off.
Gaps take time and money to fix, so buyers either wait for them to be fixed or lower the price.

Common gaps and how they're fixed

Gap	Usual fix
An assignment was signed but never recorded	Find the original and record it, or have the assignor sign a new one.
A prior holder never signed an assignment	Get a signed assignment from that holder (or its successor), sometimes dated "effective as of" the earlier sale.
A name, date or recording number is wrong	Record a corrective assignment.
A prior holder has dissolved or can't be found	Talk to a real estate attorney. Options depend on the state.
The endorsements on the note don't match the assignments	Line up allonges and assignments so each sale has both.

If you're selling a note

Pull copies of every recorded assignment from the county before you ask for offers. If you were the original lender, there may be none yet, which is fine: the first assignment will be yours to the buyer. If you bought the note, make sure the assignment to you was recorded. The documents checklist lists everything else buyers ask for.

Questions

What is an assignment of mortgage?

A document, usually recorded with the county, that transfers the lender's interest in a mortgage from one holder to another. It's signed when a mortgage note is sold.

Is an assignment of deed of trust different?

It's the same idea for states that use deeds of trust. It transfers the beneficiary's interest to the new note holder and is recorded with the county.

Does the assignment transfer the note?

Not by itself. The note is transferred by endorsement or allonge. In a sale, both the endorsement and the assignment are signed.

What is a corporate assignment of mortgage?

An assignment signed by a company, such as a bank or a loan servicer, rather than an individual. The idea is the same.

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