Note brokering

How to choose a mortgage note buyer or broker

Updated 2026-10-19

To choose a mortgage note buyer, decide first whether you want to sell to one direct buyer, work through a note broker who shows the note to several buyers, or list it on a note trading platform. Then compare written offers on net cash, the conditions attached, who pays closing costs, and how and where the deal closes. Be cautious of anyone who asks you to pay money before closing or won't put terms in writing.

Three ways to find a buyer

1. A direct note buyer

How it works: a company or investor buys the note with its own money.
Good fit when: you want one counterparty and a simple process.
Watch for: you only see one buyer's price and terms.

2. A note broker

How it works: the broker gathers the details, shows the note to buyers who fit and helps you compare offers. Brokers usually don't buy the note themselves.
Good fit when: your note is unusual, or you want several buyers to look at it.
Watch for: how the broker is paid, and whether that's disclosed. See how note brokers get paid.

3. A note trading platform or marketplace

How it works: you list the note online, and buyers bid on it or contact you.
Good fit when: you're comfortable preparing the file and handling questions yourself.
Watch for: the listing terms, who does the due diligence, and how closing is handled.

Some note buyer directories list many buyers in one place. They can be a starting point, but a listing isn't a recommendation. Check each buyer yourself. More on the broker vs. buyer choice in note broker vs. direct buyer.

Questions to ask any buyer or broker

Will you put the price and every condition in writing before I sign anything?
Do you buy with your own funds, or are you placing the note with someone else?
What will your due diligence check (payment history, property value, title, the borrower's credit, the chain of assignment), and can the price change after it?
Who pays for title work, the property valuation, recording and servicing transfer?
Who closes the deal? Look for an independent title company, escrow agent or attorney.
How long from a signed agreement to funding, and what typically causes delays?
Will you buy part of the payments as well as the whole note?

Red flags

Asking you to pay money up front before any closing
Asking you to mail the original note before there's a signed agreement and an escrow or closing agent
Refusing to put an offer or its conditions in writing
Pressure to decide on the spot
A price that drops sharply after diligence, with no clear reason
Asking for Social Security or bank account numbers in a first conversation

How to compare offers

Put each offer side by side and compare:

Net cash to you after every cost, not the headline price.
Conditions: what has to check out for the price to hold.
Full or partial: how much of the note each offer covers.
Timeline and closing method.
Who you'll be dealing with after closing, if anything is left open.

A note's value is mostly the present value of its payments at a yield the buyer accepts, adjusted for risk. See how notes are priced to sanity-check what you're offered.

Selling one note vs. a portfolio

A single private note is usually reviewed on its own: one borrower, one property, one file. Several notes can be offered together as a pool, which may interest buyers who prefer larger purchases, though the weakest notes in a pool can pull down the price for the group. If you hold more than one note, ask buyers to price them separately and together.

Questions

How do I find a reputable mortgage note buyer?

Ask for written terms, check how and where the deal closes, look the company up with your state's business registry and the Better Business Bureau, and compare more than one offer. A note broker can also show your note to several buyers.

Should I use a note broker or sell directly?

A direct buyer can be simpler. A broker can put the note in front of several buyers and help you compare terms. Ask any broker how they're paid.

What is a note trading platform?

An online marketplace where note holders list notes and buyers browse, bid or make contact. You usually prepare the file and handle questions yourself.

Do note buyers charge fees to sellers?

Costs vary. Some buyers build closing costs into the price and others pass specific costs to the seller. Ask for a written breakdown of everything that comes out of your proceeds.

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Educational information only, not legal, tax or investment advice. Laws and practices vary by state and situation, so talk to a qualified professional about yours. CashForMyNote.com does not buy notes. Affiliate disclosure.