What Documents Do I Need
to Sell My Mortgage Note?
A complete checklist — with state-specific guidance on mortgage vs. deed of trust states. You don't need every document before reaching out, but knowing what to gather speeds up your review and closing.
Request a FREE Note ReviewThe Core Document Checklist
These are the documents every mortgage note buyer will need — regardless of which state your property is in. Having these ready before your free note review will speed up your evaluation and your closing.
The Original Promissory Note
This is the primary document — the signed legal promise from the borrower to repay the loan. It contains the loan amount, interest rate, payment schedule, and maturity date. Note buyers cannot purchase your note without reviewing the original. If you don't have the original, contact the title company or closing attorney from when the sale was made — they often retain copies.
Your Mortgage or Deed of Trust (depending on your state)
This is the security instrument — the recorded document that ties the promissory note to the real property. You should gather your mortgage or deed of trust depending on which state the property is in. Both serve the same purpose: they give the note holder the right to foreclose if the borrower stops paying. This document should be recorded with your county — if you don't have a copy, it is available through your county recorder's office or through a title search.
Payment History
A record of every payment received — dates, amounts, and any missed or late payments. This can be a simple spreadsheet, bank statements, or a payment log you've kept. Seasoned notes with a consistent payment history sell for more than newer notes. The longer and cleaner the payment record, the stronger your offer will be.
Closing or Settlement Statement
The HUD-1 or closing disclosure from the original sale. This shows the original purchase price, down payment, loan amount, and the terms agreed upon at closing. It helps a note buyer quickly verify that the note was created at arm's length and that the original terms are consistent with what is in the promissory note.
Property Information
The full property address, property type (single-family, multi-family, commercial, land), and ideally a recent estimate of current market value. Note buyers will order their own valuation, but having a recent appraisal, tax assessment, or Zillow estimate helps speed things up. The property value relative to the remaining loan balance (loan-to-value ratio) is one of the biggest factors in your note's price.
Title Insurance Policy (if available)
If a title insurance policy was issued when the note was created, include it. Title insurance protects against claims on the property and gives a note buyer confidence in the chain of title. Not all seller-financed transactions involve title insurance — if there was none, that is not a deal-breaker, but the buyer may require a new title search during due diligence.
Any Loan Modifications or Amendments
If the note has ever been modified — a change in interest rate, payment amount, deferral, or maturity date extension — include any signed modification agreements. Undisclosed modifications can delay or derail a closing, so it is important to be upfront about the full history of the note.
Mortgage State vs. Deed of Trust State — What You Need to Know
The single most common point of confusion for note holders is the difference between a mortgage and a deed of trust. Both secure the promissory note to the property — but they are different legal instruments, and which one you have depends entirely on the state where the property is located.
Mortgage States
Your security instrument is called a mortgage. Foreclosure in these states is judicial — meaning it goes through the court system, which takes longer (often 12–24+ months in some states).
Note: Longer foreclosure timelines can reduce note pricing slightly — buyers price in the risk of a longer workout if the borrower defaults.
Deed of Trust States
Your security instrument is called a deed of trust. Foreclosure is typically non-judicial — handled outside of court through a trustee, making it faster (often 60–180 days).
Note: Faster foreclosure timelines generally mean better pricing for note sellers, as buyers face less risk in the event of borrower default.
Not sure which instrument you have? Simply look at the document title on the recorded instrument from your closing — it will say "Mortgage" or "Deed of Trust" (or occasionally "Trust Deed"). If you can't locate it, we can help you find it during your free note review. When in doubt: gather your mortgage or deed of trust depending on your state, and we'll sort out the details together.
You Don't Need Everything to Get Started
Many note holders assume they need a perfectly organized file before they can reach out to a note buyer. That is not the case. Our team can begin a preliminary evaluation with just a few key pieces of information:
Start with what you have. Our team will tell you exactly what else is needed once we understand your note — and we will guide you through locating anything that is missing. There is no pressure and no obligation. A free note review is always the best first step.
What Note Buyers Are Actually Evaluating
When our team reviews your documents, here is what we are looking at — and how each factor affects your offer:
The remaining loan balance divided by the current property value. Lower LTV means more equity in the property — the single biggest pricing factor.
How many consecutive on-time payments the borrower has made. 12+ months of clean payment history significantly improves your offer.
Higher interest rates on your note generally mean a better yield — and therefore a better offer — for the note buyer.
Single-family residential notes in desirable markets command better pricing than rural land or commercial notes. Strong markets like Miami, Atlanta, Houston, and Phoenix are favorable.
Deed of trust states with faster non-judicial foreclosure timelines are generally more favorable for note buyers — and that can translate into a slightly better offer for you.
A larger original down payment (10%+ or more) signals that the borrower had meaningful skin in the game — slightly positive signal but less important than current LTV.
Frequently Asked Questions
Do I need the original promissory note to sell my mortgage note?
Yes, the original promissory note is the primary document a note buyer needs to evaluate and purchase your note. If the original is lost, it may be possible to obtain a lost note affidavit, but this adds complexity and time to the process. Our team can advise you on next steps if the original cannot be located.
What is the difference between a mortgage and a deed of trust for note selling purposes?
Both are security instruments that tie the promissory note to the property — but they differ in the foreclosure process involved. Mortgage states (like Florida, Ohio, and Michigan) require judicial foreclosure through the courts, which takes longer. Deed of trust states (like Texas, California, and North Carolina) allow faster non-judicial foreclosure. Note buyers factor the foreclosure timeline into their pricing. Either way, gather your mortgage or deed of trust depending on your state.
Can I start the note review process before I have all my documents?
Yes. Our team can often begin an initial evaluation with just the basic details — property address, original loan amount, interest rate, remaining balance, and payment history. You do not need to have every document in hand before reaching out. We will walk you through exactly what we need as we get further into the process.
What happens if my borrower has missed payments?
Non-performing notes are harder to sell and typically sell at a steeper discount than performing notes. That said, there is still a market for them. Our team will review your situation and let you know what options are available — including whether waiting for the borrower to resume payments would meaningfully improve your offer.
Ready to Find Out What Your Note Is Worth?
Start with what you have. Our team will guide you through the rest — no pressure, no obligation. A free note review is always your best first step toward understanding your options.