Premier Mortgage
Note Buyers
Your Trusted Partner for Small and Large Pool Divestitures and Individual Note Sales
We Buy Your Mortgage Notes
Sophisticated Capital. Professional Execution.
Why Choose Us
For over 40 years, Colonial Funding Group has provided a streamlined, reliable exit strategy for residential mortgage note holders. Whether you are an institutional fund manager rebalancing a portfolio or an individual investor seeking to liquidate a single private mortgage, we offer competitive pricing, certain execution, and a frictionless closing process.
What We Buy
We Acquire Performance. We Solve Complexity.
How It Works
From Submission to Funding in Four Simple Steps.
Why Sell To Us?
The Advantage of Working with a Principal Buyer.
About Us
Trusted name in the note industry for over four decades…
In a market often crowded by brokers and middlemen, Colonial Funding Group stands apart as a direct, well-capitalized principal buyer. We specialize in the acquisition of residential debt, bringing decades of combined experience in underwriting, valuation, and asset management to every transaction.
Our reputation is built on transparency and reliability. We understand that for our sellers, certainty of close is just as critical as the purchase price. We leverage proprietary valuation models and deep market insights to provide fair, data-driven offers without the typical “re-trading” or delays found elsewhere in the industry. When we commit to a file, we close.
Our reputation is built on transparency and reliability. We understand that for our sellers, certainty of close is just as critical as the purchase price. We leverage proprietary valuation models and deep market insights to provide fair, data-driven offers without the typical “re-trading” or delays found elsewhere in the industry. When we commit to a file, we close.
With more than a century of combined experience, our team of note industry professionals excels in:
• Evaluating a wide range of note types
• Offering competitive pricing
• Creating win-win scenarios for note owners
• Streamlining the note selling process
We’ve built strong relationships with diverse partners in the note industry:
• Individual note holders
• Institutional investors
• Qualified brokers and note flippers
• Trusted counterparties
Our commitment to fair dealing and professional service has made us a preferred partner for anyone looking to sell their real estate notes.
At Colonial Funding Group, we understand that every note and situation is unique. We’re committed to:
1. Providing personalized solutions
2. Offering transparent, fair evaluations
3. Ensuring a hassle-free selling experience
4. Delivering quick turnaround times
Whether you’re looking to free up cash, diversify your portfolio, or simply avoid the burdens of note management, Colonial Funding Group is here to help.
Frequently Asked Questions
General Questions
Do you charge any fees to evaluate my note or pool?
No. We are a direct principal buyer, not a broker. We do not charge “evaluation fees,” “commitment fees,” or “application fees.” Our goal is to provide a firm buy-out price at no cost to you.
How long does the entire process take?
While every file is unique, most individual note sales close within 15-30 business days. For institutional pools, the timeline depends on the size of the tape and the quality of the data, but we pride ourselves on a due diligence process that is significantly faster than traditional bank-to-bank transfers.
For Individual Note Holders
Why would I sell my note instead of collecting the monthly payments?
Most sellers choose to liquidate for three reasons: liquidity (needing a lump sum for a major purchase or investment), risk mitigation (avoiding the risk of future borrower default), or estate simplification (distributing cash to heirs rather than a long-term debt instrument).
What happens to my borrower if I sell the note?
The terms of the original mortgage or Deed of Trust remain exactly the same for the borrower. The only difference is where they send their monthly payment. We handle the “Notice of Assignment” and all legal notifications to ensure the transition is seamless and professional for the homeowner.
What if I don't have all the original paperwork?
While a complete file (Note, Mortgage/Deed of Trust, Title Policy, and Payment History) is ideal, we understand that documents are sometimes lost over time. Our team can often assist in reconstructing the file or obtaining “lost note” affidavits to move the sale forward.
For Small Fund Manager
I have a pool of 10 notes, but a few are underperforming. Will you buy the whole group?
Absolutely. We specialize in “blended” acquisitions. We can price your performing assets at top-tier yields while applying our distressed-asset expertise to provide a fair value for the non-performing or sub-performing notes in the pool. This allows you to clear your books entirely in a single transaction.
What if my notes originated under various entities or older framework?
Our legal team specializes in cleaning up collateral files and ensuring a compliant transfer of lien.
For Institutional Sellers
What is your preferred asset profile?
We are opportunistic buyers. We look for everything from seasoned, performing first-lien mortgages to sub-performing and non-performing pools. We are particularly adept at pricing “scratch and dent” files or assets with documentation deficiencies.
How do you handle sensitive borrower data during the bidding phase?
Security is a priority. We utilize encrypted data rooms for all due diligence. During the initial “tape” review, we only require anonymized data to provide a preliminary bid, ensuring PII (Personally Identifiable Information) remains protected until an LOI is executed.
Are you buying the servicing rights as well?
Yes. We typically acquire assets “servicing released.” We have established relationships with licensed national servicers to ensure a compliant and ethical boarding process post-acquisition.
Technical & Pricing
How do you determine the purchase price?
Our valuation is based on several variables, including the interest rate of the note, the current remaining balance, the borrower’s payment history (seasoning), the Loan-to-Value (LTV) ratio, and the current market yield requirements.
Do you buy notes that are behind on payments?
Yes. We have a dedicated team specialized in non-performing loans (NPLs). We price these assets based on the underlying real estate value and the potential for a loan workout or deed-in-lieu of foreclosure.
What We Buy
We purchase residential mortgage notes across the United States, ranging from high-performing assets to non-performing debt. Our expertise allows us to evaluate and acquire two primary asset classes:
- Individual Notes: We buy “seller-financed” notes, private investor notes, and notes held by estates or trusts. If you are receiving monthly payments and would rather have a lump sum of cash today, we can purchase your note(s) in its entirety or via a partial buy-out.
- Private Investors: We offer aggressive pricing for “mini-pools” (5–50 notes) that many large institutions won’t look at and individual buyers can’t afford. We can offer a Partial exit strategy. We can purchase a specific “slice” or a set number of future payments to provide you with the exact amount of liquidity you need while you keep the remaining long-term upside.
- Institutional Note Pools: We partner with banks, credit unions, and private equity funds to acquire bulk pools of residential mortgages. We are equipped to handle diverse portfolios, including NPLs (Non-Performing Loans), Re-performing Loans (RPLs), and sub-performing assets.
How It Works
We have refined our acquisition process to be as efficient as possible, minimizing the administrative burden on our sellers.
- Initial Submission: Share the details of your note or pool via a direct consultation with our acquisition team.
- Rapid Valuation: Our underwriters perform a preliminary analysis, typically providing a soft quote or Letter of Intent (LOI) within 72 hours.
- Due Diligence: Once the price is agreed upon, we conduct a focused review of the collateral file, payment history, and title.
- Seamless Closing: After due diligence is cleared, we fund the transaction. We handle the heavy lifting regarding the transfer of documents to ensure you receive your proceeds quickly.
Why Sell To Us?
Sellers choose Colonial Funding Group because we eliminate the uncertainty and high costs associated with traditional note sales.
- No Commission or Hidden Fees: Since you are selling directly to the buyer, there are no broker commissions or “platform fees” eating into your proceeds.
- Certainty of Close: We use our own discretionary capital. Our offers are not contingent on outside financing, meaning we don’t back out at the eleventh hour.
- Asset Discretion: We handle every transaction with the utmost privacy and professionalism, ensuring that the transition for the underlying homeowner is handled ethically and in full legal compliance.
- Expert Underwriting: Our team has the expertise to price complex files that other buyers might shy away from, including notes with unique terms or seasoning issues.