Reference

Mortgage note terms glossary

Updated 2026-10-19

Allonge

A separate page firmly attached to a promissory note that carries endorsements when there's no room on the note itself. Read more

Assignment of mortgage

A recorded document that transfers a mortgage, the lender's security interest in a property, from one note holder to another. In deed of trust states the equivalent is an assignment of deed of trust. Read more

Balloon payment

A large lump-sum payment due at the end of a note's term, after smaller regular payments.

Beneficiary

In a deed of trust, the lender or current note holder who receives the payments and benefits from the security. Read more

Bill of sale

In a note sale, a document that conveys ownership of the loan and related rights from the seller to the buyer. It's common in loan pool and portfolio sales, alongside endorsements and assignments.

Broker price opinion (BPO)

An estimate of a property's value prepared by a real estate agent or broker. Note buyers often use one in due diligence instead of a full appraisal.

Chain of assignment

The complete, unbroken series of recorded assignments, from the original lender to the current holder of a mortgage or deed of trust. Read more

Collateral file

The original documents behind a note: the signed note, endorsements or allonges, the recorded mortgage or deed of trust, every assignment, and often the title policy. It's delivered to the buyer at closing. Read more

Deed of trust

A security instrument that pledges real estate for a loan, involving a trustor (borrower), a beneficiary (lender or note holder) and a trustee who holds a power of sale. Read more

Direct note buyer

A company or investor that buys notes with its own funds. Read more

Discount

The difference between a note's unpaid balance and the price a buyer pays for it. Read more

Due diligence

The checks a buyer runs before closing, typically on the payment history, the property's value, title and lien position, the borrower, and the paperwork, including the chain of assignment. Read more

Endorsement

A signed instruction on a note, or on an allonge, that transfers it to a new holder, such as "Pay to the order of" the buyer. Read more

Investment-to-value (ITV)

The price paid for a note divided by the value of the property securing it. Note buyers use it to measure how much cushion the property gives them. Read more

Land contract

A seller-financing arrangement, also called a contract for deed, where the seller keeps legal title until the buyer finishes paying. Read more

Lien position

Where a lien ranks against other liens on the same property. A first lien is paid before a second from the proceeds of a sale.

Loan-to-value (LTV)

The unpaid loan balance divided by the property's value.

Lost note affidavit

A sworn statement used when the original note can't be found, describing the note and how it was lost. Some buyers accept one, often at a lower price. Read more

Mortgage note

A promissory note secured by real estate through a mortgage or deed of trust. Private mortgage notes are often created when a seller finances the sale of a property. Read more

Non-performing note

A note whose borrower has stopped paying as agreed. It's commonly used for loans 90 or more days behind, though definitions vary. Read more

Note broker

Someone who connects note holders with note buyers, gathers the details, shows the note to buyers who fit and helps compare offers, usually without buying the note. Read more

Note trading platform

An online marketplace where note holders list notes and buyers browse, bid or make contact. Read more

Partial note sale

The sale of a set number or portion of a note's upcoming payments, after which the remaining payments revert to the original holder. Read more

Performing note

A note whose borrower is paying as agreed. Read more

Promissory note

A signed, written promise to repay a debt on stated terms. When it's secured by real estate it's often called a mortgage note or real estate note. Read more

Reconveyance

The document a trustee records to release a deed of trust once the loan is paid in full. Read more

Servicer

The company that collects payments, keeps records, sends statements and handles borrower contact for the note holder.

Unpaid principal balance (UPB)

The amount of principal the borrower still owes on the note, not counting future interest.

Yield

The annual rate of return a buyer earns on the price it pays for a note. A higher required yield means a lower price. Read more

Educational information only, not legal, tax or investment advice. Terms can be used differently by state and by company. CashForMyNote.com does not buy notes.