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How Much Can You Sell a Mortgage Note For? - My Story


Disclosure: This is a sponsored post.

Welcome to my journey, which begins in the beautiful neighborhood of Grant Hill in San Diego, where I owned a charming house. At some point in my life, I was dreaming of more. Like many, I desired to explore the world beyond the familiar streets and cozy corners of my neighborhood.

I wanted to go scuba diving in Jamaica, enjoy the sun, and live on the beach for a short time. Selling my house would give me enough capital to do so, and erase a lot of my ongoing expenses.

The opportunity to turn this dream into reality presented itself in an unexpected manner. When the time came to sell my house, I was introduced to the concept of creative financing by a prospective buyer. They proposed using seller-financing, a method I hadn't considered before. This arrangement turned out to be a win-win situation.

Not only did I sell my house for a more attractive price, but I also started receiving consistent monthly payments from the buyer. It was the perfect setup, allowing me to embark on my travel adventures with a steady income in my pocket.

For a year, I lived my dream, traveling to places I had only seen in pictures, diving into cultures, and experiencing the world in ways I had never imagined. However, life is full of surprises, and my plans took an unexpected turn. The adventurer in me was satisfied, but now I found myself in need of a lump sum of cash to embark on a new chapter. This led me to consider selling my seller-financed note. But the question loomed large: How much could I sell my mortgage note for?

What is a Mortgage Note?

A mortgage note is like a promise made by one person to pay another. When I sold my house through seller-financing, I essentially lent the buyer the money to purchase the property. This agreement was captured in a promissory note, detailing the loan amount, interest rate, and the payback period. It was secured by a deed of trust, ensuring I had a claim on the property if things went south.

The Process of Selling a Mortgage Note

Selling my mortgage note wasn't as daunting as I initially thought. The process was straightforward. First, I gathered all the details of the mortgage note, including the property address, loan amount, interest rate, and the name of the property owner. Then, I reached out to a reputable mortgage note buyer for a quote. After reviewing the offer and deciding it met my needs, I proceeded with the sale. The mortgage note buyer conducted a title search and property evaluation to ensure everything was in order. Once the due diligence was completed, the transaction was funded, and I received my lump sum of cash.

Reasons to Sell Your Mortgage Note

Selling my mortgage note made sense for several reasons. Initially, the consistent payments supported my travel lifestyle. However, as my plans changed, I needed a more substantial amount of cash to fund my new endeavors. Selling the note provided me with the financial flexibility I needed. Other note sellers might have different motivations, such as investing in new opportunities with higher returns or alleviating the hassle of chasing down future payments.

Determining the Market Value of Your Mortgage Note

The market value of a mortgage note depends on several factors. The down payment made by the buyer influences the note's value, as it affects the loan-to-value ratio. The borrower's credit score is also crucial; a higher score can make the note more attractive to note investors. The interest rate and the terms of the loan, including whether there are any balloon payments, play significant roles. My note's value was determined by these factors, along with the payment history and the property's condition following a thorough property evaluation.

Sale Options When Selling a Mortgage Note

When I decided to sell my mortgage note, I discovered there were several options. I could opt for a full purchase buy-out, where the entire note is sold for a lump sum. Alternatively, a partial purchase option allows for selling just a portion of the future payments. This flexibility meant I could tailor the sale to meet my financial needs precisely.

Finding the Right Buyer

Choosing the right mortgage note buyer was crucial. I looked for a buyer with a strong reputation for fairness and transparency. It was important to find someone who valued my note based on its merits, such as the payment history and the property evaluation, rather than my personal credit history. After comparing offers, I settled on a buyer who provided a competitive quote and demonstrated a clear understanding of the value of my private mortgage note.

Maximizing the Value of Your Mortgage Note

To maximize the value of my mortgage note, I made sure the terms were attractive from the start. A significant down payment, a reasonable interest rate, and a solid payment history made my note appealing to potential buyers. I also ensured all transactions were documented properly, which was beneficial during the sale process.


Selling my seller-financed mortgage note was a pivotal decision that supported my evolving lifestyle and financial goals. The journey from being a property owner in San Diego to a world traveler, and eventually a note seller, taught me the importance of flexibility and understanding the value of real estate notes. For anyone considering selling their mortgage note, remember: the key is in the details, from the terms of your note to the choice of your mortgage note buyer. With the right approach, selling your mortgage note can be a smooth and rewarding process.