In the United States, a mortgage note (also known as a real estate lien note, borrower’s note) is a promissory note secured by a specified mortgage loan; it is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. While the mortgage deed or contract itself hypothecates or imposes a lien on the title to real property as security for a loan, the mortgage note states the amount of debt and the rate of interest and obligates the borrower, who signs the note, personally responsible for repayment.

A mortgage is a document that encumbers the real property as security for the payment of a debt or other obligation. The term “mortgage” refers to the document that creates the lien on real estate and is recorded in the local office of deed records to provide notice of the lien secured by the creditor. The creditor or lender, also called either mortgagee (in a mortgage) or beneficiary (in a deed of trust), is the owner of the debt or other obligation secured by the mortgage. The debtor or borrower also called the mortgagor (in a mortgage) or obligor (in a deed of trust), is the person or entity who owes the debt or other obligation secured by the mortgage and owns the real property which is the subject of the loan.

In almost all cases, the law of the state in which the property is located dictates whether a mortgage or deed of trust can be used. Although a deed of trust securing real property under a debt serves the same purpose and performs the same function as a mortgage, there are technical and substantive differences between the two. A deed of trust is executed by the debtor and property owner, to a disinterested third person identified as a trustee, who holds the ownership of the property in trust for the creditor; whereas, when a mortgage is used, title to the collateral remains in the debtor, and the mortgage creates a lien on the real estate in favor of the creditor. In some jurisdictions, the deed of trust enables the trustee to obtain possession of the real property without a foreclosure and sale, while others treat a deed of trust just like a mortgage. In the latter jurisdictions, the deed of trust is governed by the law applicable to mortgages. The deed of trust requires the trustee to reconvey the property back to the debtor when the debt has been paid in full. Assignment of the creditor’s interest does not result in a change of trustee; instead, only the note or other evidence of debt is transferred and the new owner of the loan acquires the prior lender’s beneficial interest in the trust.

Mortgage notes go by many names. Currently, we buy:

Mortgage Notes
Seller Financed Mortgage Notes
Commercial Property Notes
Real Estate Notes
Contracts for Deed
Land Contracts
Balloon Notes
Interest Only Notes
Performing Notes

If you are not sure your type of note is eligible to be sold, give us a call. We will look at any type of note you have to see whether a deal can be made, all at no cost to you.

Most notes are deemed salable if they have at least one of the following characteristics:

Significant buyer equity
Good payment history
Payer has a good credit score

The best way to know whether you can sell your note is by calling one of our representatives for a free, no-obligation quote.

The average sale takes two weeks to a month, depending on the complexity of the deal and what happens during the appraisal process. After that, the money is wired into your account the same or next business day. (When the funds are available may depend on your financial institution.)


We purchase real estate notes on virtually all types of property: single-family homes, multi-family homes, farmland, commercial, recreational, vacant land, and mobile homes with land attached.

No. All terms and conditions set forth in the original note remain the same. Your purchasers simply send their payments to us.

We at Cash Note USA have a large pool of real estate investors and our own capital that are looking for a secure investment. If your note is investment-grade, and if the price makes sense for you, we would like to buy it so we can put our money to work.

Yes. When you consider the impact inflation can have on the value of your note over its life, cash in hand today can be expected to be worth a lot more now than years down the road. So this is one of the greatest benefits.

We find most note holders end up selling a note to free up cash for another opportunity, to cover unexpected bills, remodel their home or to simply get their money today instead of waiting up to 30 years for the rest. In many cases, our sellers end up selling a partial so they can get some cash now without giving up all their future interest.

We obtain information from you about your note, the payor, and property so that we can determine if it’s a note our investors would be willing to purchase. If it is, we will provide you with a cash offer to buy all or part of the note. If you decide to proceed, we coordinate with the realtor, servicing company, title, and escrow company to close the note within 30-45 days.

The value of your note is dictated by how your paperwork is structured, the payment performance history, your payor’s creditworthiness and the quality of the underlying property. These four factors will combine to determine the note’s level of investment risk. The lower the risk, more our investors are willing to pay for your note.

How much your mortgage note is worth depends on how likely the payer is to continue to make payments. A less-risky note is worth more than a higher-risk note.

These factors can increase the amount your note is worth:

  1. Rising value of the property
  2. The buyer having a substantial amount of equity in the property
  3. The buyer having an above-average credit score

No! We are happy to give you a free note valuation in 24 Hours or less.

Money today is worth more than money in the future. Most investors want to earn a 8-14% annual return over the life of a note and the longer the note, the deeper the discount will be in order to earn that return every year. That’s why a 10-year note is worth more than a 30-year note. Quality is also a factor. If the note is low risk, the investor will be willing to buy it at a lower yield and thus pay more cash for it today. Notes with a high level of risk will merit a higher yield and will be discounted more.

Normally it takes 25-35 days but it can go much faster if you have all your documentation in place and the note is a fit for our fund.

Most notes take 30-45 days to close but we’ve closed in under a few weeks before. If you are in a rush please talk with our note specialist ASAP to assess your situation.

In most cases, your payor won’t know you’ve sold the note until the transaction has been closed. We will request your permission if we do need to contact them during the note buying process. The only change for them once the note has been bought is where they send their payment to. Everything else stays the same.

No. But we do have relationships with experienced non-performing note buyers that we can refer you to. Please talk to one of our specialists to find out our recommendations.

Yes. We do buy land contracts. To get a free valuation on yours, click on this link to speak with one of our specialists.

We can often structure a small partial purchase that will enable you to get cash quick.

No, mortgage note owners have the option of selling only a portion of the mortgage note. In the event of a partial sale, a loan servicing company receives the payment from the payer. The servicing company then divides the money between the mortgage note purchasing company and the original note owner.

When you sell a partial, you keep part of your note. The most common partial is where you sell a certain number of the upcoming payments. Let’s say you have the 10-year note and decide to sell the next 5 years of payments and keep the back 5 years. The other method is a split payment partial where you sell a portion of the monthly payment and keep the rest. Partials are a great way to free up the exact amount of cash you need without selling the whole note at a big discount. To learn more about them, download our free Partial guide here.

When we buy a partial, we will set it up with a third party servicing company to monitor the payments and track how much of the note both you and the investor own. If the note defaults and the property are resold, the investor is entitled to their remaining portion first and you get the rest. Our Investors have bought several thousand partials and the best thing is for you to speak with one of our note specialists who will share our partial agreement with you. You can even take it and have your attorney review it if desired.

We don’t offer tax advice and you’ll need to confirm with your CPA. We’ve found that in most cases, if a seller claimed the installment sale tax method back when they created the note and if they are selling it now for more than their basis, then they will need to pay tax on any capital gains. Since a note could also be sold at a capital loss, it may actually reduce taxes owed come April 15th. Make sure you chat with your tax professional to find out exactly how selling your note will impact your taxes.

When you convert part or all of your real estate note into cash, you gain several advantages in addition to immediate cash:

1) You don not have to worry about the payments you receive each month slipping away on life is little expenses.
2) You receive a substantial sum of cash right now enough to accomplish some major goals.
3) You don’t have to worry about collecting monthly payments or servicing your note; we’ll handle it.
4) You don’t have to worry about whether the taxes and insurance premiums are being paid each year to protect your investment; we’ll handle it.
5) You don’t have to worry about whether your purchaser will continue to make their payments.

No, terms of the mortgage will not change with the sale of the note. Both traditional bank-owned mortgages and private mortgages are often sold or their servicing rights transferred. Everything remains the same for the payer, who simply pays someone new after a sale.

Cash Note USA, has been in business for many years. Today, we are the premier real estate note buyers in the nation. We are a sound financial company, one you can trust to serve your financial needs quickly and efficiently. Our highly qualified, experienced Investment Analysts are glad to assist you.