Individual Mortgage Note Sales
A direct buyer for seller-financed notes, private mortgage notes, and individual note holders looking to convert monthly payments into a lump sum.
If you are receiving monthly payments from a residential mortgage note, you may not want to wait years to collect the full balance. Selling your note can provide immediate liquidity, reduce long-term borrower risk, and simplify an estate, trust, or investment portfolio.
Colonial Funding Group buys individual residential mortgage notes across the United States, including seller-financed notes, private investor notes, and notes held by estates or trusts. Whether you want to sell the entire note or explore a partial buy-out, our team can review the file and provide a professional, data-driven offer.
In a market crowded with brokers and middlemen, Colonial Funding Group stands apart as a direct principal buyer. When we commit to a file, we close.
What We Buy
We acquire individual residential mortgage notes across a wide range of situations, including:- Seller-financed residential mortgage notes
- Private mortgage notes
- Notes held by individual investors
- Notes held by estates or trusts
- Performing residential mortgage notes
- Re-performing loans, also known as RPLs
- Sub-performing mortgage debt
- Non-performing loans, also known as NPLs
- Notes with missing or incomplete documentation
- Partial note sale opportunities
Our team understands that individual note sales are not always simple. Some sellers have complete files and clean payment histories. Others may be missing original documents, dealing with older paperwork, or trying to understand whether a full or partial sale makes the most sense.
That is where experienced underwriting matters.
Built for Individual Note Holders
Individual note holders are often looking for more than a purchase price. They need a buyer that can explain the process clearly, evaluate the file fairly, and handle the transfer professionally.
Colonial Funding Group can help sellers who need:
• A lump sum instead of monthly payments
• A direct buyer for a seller-financed note
• A full or partial note sale
• A professional review of the note’s value
• Help understanding incomplete documentation
• A clean borrower transition
• A private and professional closing process
• Certainty that the buyer has the capital and experience to close
The terms of the original mortgage or Deed of Trust remain the same for the borrower after a note sale. The borrower is not agreeing to a new loan. The primary change is where they send their monthly payment. Colonial Funding Group handles the required notices and transfer steps to support a smooth and compliant transition.
Why Sell to Colonial Funding Group?
Direct Principal Buyer
We are not a broker or platform. You are working directly with the buyer, which helps eliminate extra commissions, unnecessary layers, and delays.
Certain Execution
For over 40 years, Colonial Funding Group has provided reliable exit strategies for residential mortgage note holders. Our team brings more than a century of combined experience in underwriting, valuation, and asset management.
Full or Partial Buy-Out Options
Some sellers want to sell the entire note. Others only need a specific amount of liquidity and may prefer to sell a defined stream of future payments while keeping some long-term upside. Colonial Funding Group can review both full and partial note sale opportunities.
Professional Underwriting
We are equipped to evaluate notes with unique terms, seasoning issues, missing documents, older origination structures, or performance challenges. A complete file is ideal, but incomplete paperwork does not always prevent a sale.
Clean Borrower Transition
We handle the Notice of Assignment and related transfer steps so the borrower is notified properly and the payment transition is handled professionally.
How the Process Works
1. Initial Submission
Share the details of your note with our acquisition team. Helpful information includes the current balance, interest rate, monthly payment, payment history, property address, lien position, and any available loan documents.
2. Rapid Valuation
Our underwriting team performs a preliminary analysis and can typically provide a soft quote within 72 hours, depending on the completeness of the information provided.
3. Due Diligence
Once pricing is aligned, we conduct a focused review of the note, Mortgage or Deed of Trust, payment history, title information, and other available documentation. If documents are missing, our team can help identify what may be needed to move the sale forward.
4. Seamless Closing
After due diligence is cleared, we fund the transaction and coordinate the necessary transfer steps. We handle the heavy lifting so the closing process is organized, professional, and timely.
Frequently Asked Questions
Why would I sell my note instead of collecting the monthly payments?
Most sellers choose to liquidate for three reasons: liquidity, risk mitigation, or estate simplification. Some need a lump sum for a major purchase, investment, or obligation. Others want to reduce the risk of future borrower default or simplify an estate by converting a long-term debt instrument into cash.
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. Colonial Funding Group handles the Notice of Assignment and all required legal notifications to support a seamless and professional transition.
What if I do not have all the original paperwork?
A complete file is ideal and usually includes the Note, Mortgage or Deed of Trust, Title Policy, and Payment History. However, we understand that documents are sometimes lost over time. Our team can often assist in identifying missing items, reconstructing the file, or obtaining a lost note affidavit when appropriate.
Can I sell part of my note instead of the entire note?
In some cases, yes. Colonial Funding Group can review partial buy-out options, including the purchase of a specific number of future payments or a defined payment stream. This may allow you to receive the liquidity you need while keeping a portion of the long-term note value.
How do you determine the purchase price?
Our valuation is based on several variables, including the interest rate of the note, current remaining balance, borrower payment history, loan-to-value ratio, lien position, property type, documentation quality, and current market yield requirements.
Do you buy notes that are behind on payments?
Yes. Colonial Funding Group evaluates both performing and non-performing notes. Non-performing notes are priced based on the underlying real estate value, borrower status, collateral, documentation, and potential resolution strategy.
Do you charge fees to evaluate my note?
No. Colonial Funding Group is a direct principal buyer, not a broker. We do not charge evaluation fees, commitment fees, or application fees.