Sell Your Real Estate Mortgage Note

A mortgage note is a written promise to repay a loan secured by real estate. The note is the IOU. The mortgage (or deed of trust) is the document that lets the lender foreclose if the IOU isn’t paid. If you sold a property with owner financing, took back paper on a deal, or were assigned a note as part of an estate, you own a mortgage note.

Owning the note means you collect the monthly payments. Selling the note means trading those future payments for one lump sum today. The buyer (JKP Holdings in this case) takes over collection, the borrower keeps the same loan terms, and you walk away with cash and zero ongoing servicing.

The 10 questions sellers ask most often. All 10 are also fed to Google + AI engines as FAQPage schema so your search-result snippet can show direct answers.

1. How much can I sell my mortgage note for?

Most performing residential notes sell for 70% to 95% of the unpaid principal balance. Price depends on the borrower’s payment history, the interest rate on the note, the remaining term, the property’s loan-to-value ratio, and current investor yield expectations. A note with 12+ months of on-time payments, a rate at or above current market, and 60%+ collateral equity will price near the top of that range. JKP Holdings provides a free written offer within 24 hours of receiving your note details.

2. Why is there a discount when I sell my mortgage note?

The discount exists because the buyer is paying you cash today for payments you would otherwise collect over years or decades. That discount represents the buyer’s required yield — the return they need to take on the borrower’s risk, the property risk, and the time-value-of-money risk. A note with a higher interest rate, stronger payment history, and lower LTV gets a smaller discount because it carries less risk. The discount is not a fee — it is the mathematical difference between a future stream of payments and a lump sum today.

For the long version with a worked $80k example, read Why Is There a Discount When You Sell a Mortgage Note?

3. How long does it take to sell a mortgage note?

Most full note sales close in 30 to 45 days from the signed purchase agreement. Partials and clean performing notes can close in 21 days. The timeline depends on how quickly title work, the property valuation (BPO or appraisal), and loan document review are completed. JKP Holdings provides a written offer within 24 hours of receiving the note file and can typically wire funds within 4 to 6 weeks.

4. What types of mortgage notes does JKP Holdings buy?

JKP Holdings buys performing and non-performing first-position and second-position notes secured by residential and commercial properties nationwide. We also purchase note partials, wraparound notes, contracts for deed, and seller-financed land contracts. Dave Putz has been buying notes since 2010 nationwide — see Buy Box for criteria with no minimum UPB and no upfront seller fees.

5. Can I sell a non-performing mortgage note?

Yes. JKP Holdings buys non-performing notes at a deeper discount than performing notes because the buyer assumes the cost and time of resolving the default through loan modification, deed-in-lieu, short sale, or foreclosure. Even if the borrower has stopped paying for 12+ months, an offer can still be made based on the property value and the state’s foreclosure timeline. Non-performing notes typically sell for 40% to 70% of UPB depending on the collateral.

6. Do I pay any upfront fees to sell my note?

No. JKP Holdings does not charge sellers any upfront fees, application fees, evaluation fees, or broker commissions. The price quoted is the price paid at closing. Standard third-party costs that may apply at closing — title search, recording fees, and document preparation — are disclosed in the purchase agreement before signing.

7. How is the value of my mortgage note determined?

Note value is built from seven inputs: the unpaid principal balance, the note interest rate, the remaining term, payment history (on-time vs late), the property’s current loan-to-value ratio, the borrower’s credit profile, and how long the note has been seasoned (how many payments have been made). Performing notes with 12+ on-time payments and an LTV under 70% command the smallest discounts. The buyer then back-solves a target yield to arrive at a purchase price.

8. What’s the difference between selling the full note and selling a partial?

A full note sale transfers every remaining payment to the buyer in exchange for one lump sum today. A partial sale transfers only a defined number of future payments — for example, the next 60 payments on a 240-payment note. You receive a smaller lump sum now and the remaining payments revert back to you when the partial period ends. Partials let sellers raise cash without giving up the back end of the note.

9. Will I owe taxes when I sell my mortgage note?

Potentially yes. Tax treatment depends on how you originally financed the property, how long you have held the note, your cost basis, and whether you originally elected installment-sale treatment under IRS Section 453. The sale may produce ordinary income, capital gain, or recapture income. Sellers should consult a CPA familiar with installment sales before signing a purchase agreement. JKP Holdings does not provide tax advice.

10. What happens to the borrower after I sell my note?

The borrower receives a Notice of Sale and Servicing Transfer letter required by federal RESPA rules. The new buyer (or their licensed loan servicer) begins collecting payments at the same rate, same term, and same due date as the original note. The borrower’s loan terms cannot change as a result of a note sale. JKP Holdings uses licensed third-party servicers to handle borrower communications professionally and lawfully.