Buying mortgage notes

What is an allonge?

Updated 2026-10-19

An allonge is a separate sheet of paper attached to a promissory note that carries endorsements when there's no room left on the note itself. When a note is sold, the seller often endorses it on an allonge (for example "Pay to the order of [buyer]") so ownership of the note can pass to the buyer.

Why allonges exist

Notes are transferred by endorsement, the way you'd sign the back of a check. The law allows the endorsement to go on a paper affixed to the note, and that paper is treated as part of the note. Over several sales, a note can collect a whole chain of endorsements, so an allonge keeps them organized and in order.

What an allonge usually includes

A clear reference to the note: borrower name, date, original amount, and often the property address or loan number.
The endorsement: "Pay to the order of [new holder]" or an endorsement in blank, plus "without recourse" if agreed.
The signature, name and title of the person endorsing for the current holder.
It should be firmly attached to the original note. A loose page can be questioned.

Allonge vs. assignment

The allonge transfers the note (the promise to pay). The assignment of mortgage or assignment of deed of trust transfers the security instrument and is usually recorded with the county. In a typical note sale, both are signed.

Common problems

A gap in the endorsement chain, where a previous holder never endorsed.
An allonge that doesn't clearly identify which note it belongs to.
An allonge prepared but never attached, or attached to a copy instead of the original.

Problems like these come up in due diligence and can lower a note's price or delay closing. Have an attorney or title professional prepare or review transfer documents.

Questions

Does an allonge need to be notarized?

Not usually, though some buyers or local practices prefer it. The assignment of mortgage or deed of trust is commonly notarized because it gets recorded.

Who signs the allonge?

The current holder of the note, or someone authorized to sign for that holder, endorses it to the new holder.

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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.