FAQ

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Frequently Asked Questions (FAQ) – Please Pass The Note

General Questions

1. What is a mortgage note?

A mortgage note, also known as a real estate note or promissory note, is a legal document that outlines the terms of a loan between a borrower and a lender. It includes details such as the loan amount, interest rate, repayment schedule, and consequences of default.

2. What does it mean to sell a mortgage note?

Selling a mortgage note means transferring the right to receive future payments from a borrower to a buyer (such as us) in exchange for a lump sum of cash. This allows note holders to liquidate their asset rather than waiting for payments over time.

3. Why should I sell my mortgage note?

Some common reasons note holders choose to sell include:
✅ Immediate access to cash for investments, business expansion, or personal needs.
✅ Eliminating the risk of borrower default or late payments.
✅ Avoiding the responsibility of managing collections.
✅ Freeing up capital for new opportunities.

4. What types of notes do you buy?

We purchase a variety of real estate-backed notes, including:

  • Performing Notes (on-time payments)
  • Non-Performing Notes (missed or late payments)
  • Seller-Financed Notes
  • Commercial Mortgage Notes
  • Partial Notes (where only a portion of future payments are sold)

5. How is the value of my note determined?

The value of your note is based on several factors, including:

  • The remaining balance on the note.
  • The interest rate and payment history.
  • The equity in the property securing the note.
  • The borrower’s creditworthiness (for performing notes).
  • The property’s market value and condition.

The Selling Process

6. How long does it take to sell my note?

The process typically takes 2 to 4 weeks, depending on the complexity of the transaction and how quickly all required documents are provided.

7. Do I have to sell my entire note?

No, you can sell all or just a portion of your remaining payments through a partial note sale. This allows you to get cash now while retaining future income from the note.

8. What documents do I need to sell my note?

To evaluate and purchase your note, we typically require:

  • A copy of the mortgage note (promissory note).
  • A copy of the mortgage or deed of trust.
  • Payment history records.
  • The property’s insurance and tax status.
  • Any additional agreements related to the note.

9. Will selling my note affect the borrower?

No. The terms of the loan remain the same, and the borrower will simply make payments to a new note holder.

Financial & Legal Considerations

10. How much money will I receive for my note?

The amount depends on factors such as the note’s balance, interest rate, payment history, and borrower risk. We provide a competitive offer based on market conditions.

11. Are there any fees or costs to sell my note?

There are no upfront fees to request an offer. Some closing costs may apply, but these will be clearly outlined before you proceed.

12. Is selling my note legal?

Yes, selling mortgage notes is a completely legal and common practice in the real estate and financial industries. We ensure that all transactions comply with applicable laws and regulations.

Still Have Questions?

We’re here to help! Contact Please Pass The Note today for a free consultation.