Sell My Mortgage Note
Can I sell my mortgage note?
Yes. If you are receiving payments from a residential mortgage note, seller-financed note, or private mortgage note, you may be able to sell all or part of that note to a direct mortgage note buyer.
Colonial Funding Group buys residential mortgage notes nationwide. We review the note, collateral, payment history, borrower performance, documentation, and seller goals to provide a fair, professional evaluation.
Sell your mortgage note without dealing with brokers or middlemen.
Selling a mortgage note is not just about getting a number. It is about working with a buyer that understands the asset, can evaluate the file correctly, and has the ability to close.
Colonial Funding Group stands apart as a direct, well-capitalized principal buyer of residential mortgage notes. For over 40 years, our team has helped note holders, investors, and institutions evaluate and liquidate mortgage notes and note portfolios.
Whether you are asking “who can buy my mortgage note?” or you already know you are ready to sell, our team can review the opportunity and explain the next steps clearly.
We acquire performance. We solve complexity.
Colonial Funding Group purchases residential mortgage notes across the United States, ranging from high-performing assets to non-performing debt.
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 review the file for a full or partial buy-out.
Small Note Pools
We evaluate mini-pools and small portfolios that may be too small for many institutional buyers, but too complex for individual buyers to price correctly.
Institutional Note Pools
We partner with banks, credit unions, private equity funds, and institutional sellers to acquire residential mortgage pools, including NPLs, RPLs, and sub-performing assets.
Looking to sell more than one note?
If you are selling a group of notes, Colonial Funding Group also reviews small note pools and institutional note pool divestitures. This page is focused on the search many sellers begin with: how to sell my mortgage note and what to expect from the process.
What affects the value of a mortgage note?
A mortgage note is not valued only by the remaining balance. A buyer also looks at the risk, documentation, collateral, payment history, and expected return required in the current market.
Colonial Funding Group provides fair, data-driven evaluations based on the actual details of the file, not a one-size-fits-all formula.
Common valuation factors include:
You may not have to sell the entire note.
Some sellers want to sell the full mortgage note. Others only need a certain amount of cash and would prefer to keep some long-term upside.
Full Note Sale
Sell the entire note and convert the future payment stream into a lump sum of cash.
Partial Note Sale
Sell a defined number of future payments or a specific portion of the note while keeping some remaining value.
Professional Review
Compare the options and understand what makes sense based on your liquidity needs, note terms, and long-term goals.
A partial note sale depends on the structure, performance, documentation, and economics of the specific file.
What happens to the borrower when you sell your mortgage note?
Selling a mortgage note does not create a new loan for the borrower. The terms of the original mortgage or Deed of Trust remain the same.
The primary change is where the borrower sends their monthly payment after the note is transferred. Colonial Funding Group handles the Notice of Assignment and the required transfer steps to support a professional, compliant transition.
The borrower’s loan terms stay in place.
The original payment amount, interest rate, maturity date, and loan terms do not change simply because the note is sold. The note sale transfers ownership of the payment stream and related collateral rights to the buyer.
From submission to funding in four simple steps
Colonial Funding Group has refined the note acquisition process to reduce confusion, limit unnecessary delays, and help sellers understand what is needed at each step.
Initial Submission
Share the details of your mortgage note, including the current balance, payment amount, interest rate, property information, lien position, and available documents.
Rapid Valuation
Our underwriting team reviews the file and can typically provide a preliminary quote within 72 hours, depending on the quality and completeness of the information provided.
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 relevant documentation.
Seamless Closing
After due diligence is cleared, we fund the transaction and coordinate the necessary transfer steps so the closing process is organized, professional, and timely.
The advantage of working with a principal buyer
Sellers choose Colonial Funding Group because we eliminate many of the uncertainties and 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, helping reduce the risk of last-minute deal failure.
Expert Underwriting
Our team has the experience to price complex files, including notes with unique terms, seasoning issues, missing documents, or performance challenges.
Sophisticated capital. Professional execution.
In a market often crowded by brokers and middlemen, Colonial Funding Group stands apart as a direct, well-capitalized principal buyer. Our reputation is built on transparency, reliability, fair dealing, and professional service.
What documents do you need to sell a mortgage note?
A complete file is ideal, but missing paperwork does not always prevent a sale. Our team can review what you have and identify what may be needed to move forward.
If documents have been lost over time, Colonial Funding Group can often assist in identifying next steps, including file reconstruction or lost note affidavit options when appropriate.
Helpful documents may include:
Find the right path for your note or portfolio.
If you are not sure which type of sale fits your situation, these pages can help you narrow it down.
Individual Mortgage Note Sales
For seller-financed notes, private mortgage notes, estate-held notes, and individual note holders.
View PageSmall Note Pool Sales
For private investors, small funds, note flippers, and sellers holding a smaller group of notes.
View PageInstitutional Pool Divestitures
For banks, credit unions, private equity funds, asset managers, and institutional note pool sellers.
View PageQuestions about selling a mortgage note
Who can buy my mortgage note?
A mortgage note can be purchased by a qualified note buyer, investor, or principal buyer. Colonial Funding Group is a direct principal buyer of residential mortgage notes, which means you work directly with the buyer rather than going through a broker or platform.
Why would I sell my mortgage note instead of collecting the monthly payments?
Most sellers choose to liquidate for liquidity, risk mitigation, or estate simplification. Some need a lump sum for another investment, major purchase, debt payoff, or obligation. Others prefer to reduce the risk of future borrower default or simplify an estate by converting a long-term payment stream into cash.
Can I sell part of my mortgage note?
In some cases, yes. A partial note sale may allow you to sell a defined number of future payments or a specific portion of the payment stream while keeping some of the long-term value. Whether this works depends on the note terms, payment history, collateral, and economics of the file.
What documents do I need to sell my mortgage note?
A complete file is ideal and usually includes the original Note, Mortgage or Deed of Trust, Title Policy, and Payment History. If you do not have every document, Colonial Funding Group can review what you do have and help identify what may be needed to move forward.
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 primary difference is where the borrower sends the monthly payment after the note is sold. Colonial Funding Group handles the Notice of Assignment and related transfer steps to support a professional transition.
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, the Loan-to-Value ratio, the lien position, documentation quality, collateral, and current market yield requirements.
Do you buy notes that are behind on payments?
Yes. Colonial Funding Group evaluates performing, re-performing, sub-performing, and non-performing mortgage notes. Notes that are behind on payments are reviewed based on collateral value, borrower status, documentation, payment history, and potential resolution strategy.
How quickly can I get a quote for my mortgage note?
Depending on the completeness of the information provided, our underwriting team can typically provide a preliminary quote within 72 hours. More complex files or incomplete documentation may require additional review.
Do you charge fees to evaluate my mortgage note?
No. Colonial Funding Group is a direct principal buyer, not a broker. We do not charge evaluation fees, commitment fees, or application fees to review your mortgage note.