Mortgage Note FAQ

An owner-financed mortgage note — also called a seller-financed note or private mortgage note — is a written promise to repay a loan that was made directly by the property seller. Instead of the buyer obtaining a bank loan, the seller agreed to accept payments over time. The note documents the loan terms, and the agreement is typically secured by the property itself through a mortgage, deed of trust, or land contract.

A private mortgage note is essentially the same as an owner-financed mortgage note — it is a promissory note held by a private individual rather than a bank or institutional lender. The term "private" refers to the fact that the lender is a person or a small entity, not a traditional financial institution. Private mortgage notes are created through seller financing, owner carry-back arrangements, and similar transactions.

We review owner-financed mortgage notes, seller-financed notes, private mortgage notes, deeds of trust, land contracts, and inherited notes — secured by residential homes, land, or small commercial properties in all 50 states. Whether your note is a first or second position lien, we will give you an honest assessment of your options.

In many cases, yes. Note holders can sell their private mortgage notes to note buyers. The buyer purchases your right to receive future payments and pays you a lump sum in exchange. Whether your specific note qualifies depends on factors like the remaining balance, payment history, property type, and terms of the note. Requesting a free note review is the first step to finding out whether selling is an option for you.

Yes, a partial purchase is a common option. In a partial purchase, you sell a defined number of future payments for a lump sum. Once those payments are collected by the note buyer, the remaining payment stream returns to you. This allows you to access cash today while keeping some of your future income intact. Whether a partial purchase makes sense depends on your goals and your note's terms.

No. You are not required to sell the entire note. Depending on your note's details and your goals, you may be able to choose between a full purchase (selling the entire remaining balance) or a partial purchase (selling a portion of the payments). We will help you understand both options so you can make the choice that fits your situation.

That is one of the most common reasons sellers explore selling a mortgage note. If you are receiving monthly payments on a seller-financed note and would prefer to have all — or most — of that value as a single cash payment today, that is exactly the scenario a full note purchase is designed for. The note review will help determine whether your note qualifies and what a lump sum offer might look like.

None. Requesting a note review is completely free and commits you to nothing. If your note qualifies and you decide to move forward, we prepare a written offer — which you're free to accept, negotiate, or decline. There is no cost at any stage of the process.

The value of a private mortgage note depends on several factors, including the remaining balance, interest rate, payment history, remaining term, property type and condition, and the buyer's creditworthiness. We cannot give you a reliable estimate without reviewing the details of your specific note. That is exactly what the note review process is designed to determine. Requesting a review is free and carries no obligation.

Several factors determine what a note buyer will pay for your seller-financed note. Here is how they break down by impact:

High Impact — Borrower credit score, down payment at origination, loan-to-value ratio (LTV), payment seasoning (12+ months of on-time payments significantly improves your offer), and lien position (first position notes are far easier to sell than second position).

Medium Impact — Interest rate on the note, property type and location (single-family residential in strong markets commands better pricing), and state foreclosure law (deed of trust states with faster non-judicial foreclosure timelines are generally more favorable).

Lower Impact — Note age, occupancy status (owner-occupied is preferred), original purchase price, note balance (very small balances under $30,000–$40,000 may affect pricing), and amortization type (standard amortizing notes are easiest to price).

Each note is evaluated individually. See our full breakdown on the documents and valuation page.

State can have a minor influence on note value, primarily due to differences in foreclosure law and recording requirements. Deed-of-trust states with non-judicial foreclosure — like Texas, California, and North Carolina — may carry a slight advantage over mortgage states with longer judicial foreclosure timelines. But the bigger drivers of value are payment history, loan-to-value ratio, interest rate, and remaining balance, regardless of state.

The process begins with a free note review request — you share the basic details about your note using the form on our contact page. We review what you have submitted and contact you to discuss the note and what options may be available. If your note qualifies and you are interested in moving forward, we will request additional documents to prepare a formal offer. You then review the offer and decide whether to accept, negotiate, or decline. There is no cost and no obligation at any point.

An initial review typically begins within a few business days of receiving your note information. The full timeline for completing a review and presenting options depends on how quickly we can gather additional details and verify the information provided. If your note appears to qualify, we will contact you to discuss next steps. Many initial assessments are completed within one week.

To begin a review, we generally ask for basic details including the property state and type, the remaining balance, the monthly payment amount, the interest rate, the approximate remaining term, and the payment history. You do not need to have your note documents in hand to submit the initial request — the form on our contact page captures everything we need to get started.

Documents are typically required later in the process — not at the initial review stage. Once your note is being seriously evaluated, common documents requested include the original promissory note, the mortgage or deed of trust (gather your mortgage or deed of trust depending on your state), the settlement or closing statement, any recorded documents, payment history records, and, if available, a current property value estimate. See our full document checklist for details. We will guide you through the documentation process step by step if your note moves forward.

A note with missed or late payments is more difficult to sell, and may affect the offer significantly — or disqualify the note from a purchase entirely. However, payment history is just one of many factors we consider. We encourage you to submit a review request regardless, and we will give you an honest assessment of what options, if any, may be available given the payment history on your note.

A note that is not recorded in public records presents additional challenges and risk. While this does not automatically disqualify a note from consideration, it is an important factor in the review. If your note is unrecorded, it is worth mentioning in your request form so we can factor that into the initial assessment.

Inherited private mortgage notes are eligible for review. If you inherited a note and are now the note holder, you have the same rights as the original holder — including the right to explore selling the note. You may not have all the original documents, and the payment history may be unclear; we will work with you to gather what is needed and provide an honest assessment of your options.

We review and purchase notes nationwide. The property does not need to be in your state of residence, and you do not need to be located near the property. Requirements and recording laws vary by state, but our team is familiar with state-specific considerations and handles those details as part of the process.

Notes with balloon payments — where a large lump sum is due at a future maturity date — can still be reviewed. The balloon payment date and amount are factored into the note's valuation. In some cases, a balloon note may actually make a partial purchase particularly attractive, since you can access cash now and the balloon payment eventually returns to you. We will evaluate the specifics of your note during the review.

Yes. We actively review notes secured by rural land, farmland, timberland, raw acreage, and other non-traditional property types in all states. Rural land notes are one of the most underserved segments of the note market and our team has significant experience evaluating and purchasing them nationwide.

Yes. Moxxie Asset Group reviews and purchases seller-financed mortgage notes backed by properties in all 50 states. The property does not need to be in Florida, and you do not need to be located near the property. We handle state-specific recording requirements, deed of trust vs. mortgage-state differences, and local title and closing logistics as part of every transaction.

No, not every note will qualify for purchase. Notes with poor payment history, unrecorded collateral, very low balances, or other complicating factors may not qualify — or may not qualify at terms that make sense for the seller. We will always give you an honest answer during the review process. If your note does not appear to qualify, we will tell you clearly and explain why.