Sell a Non-Performing Note
Behind on payments or in default? We buy non-performing mortgage notes (NPNs) for cash, valuing them on the property and recovery — not a payment stream.
- Definition Typically 90+ days delinquent
- Valued on Collateral & recovery path
- Lien position First & second liens
- We handle The workout / foreclosure
A non-performing note (NPN) is a mortgage note whose borrower has stopped paying — usually defined as 90 or more days delinquent. For the note holder, an NPN has turned from a stream of income into a problem: no payments are coming in, and pursuing the borrower or the property takes time, money, and expertise most individuals don't have. Selling the note transfers that burden to a buyer who does this for a living. We buy non-performing notes for cash.
How non-performing notes are valued
A performing note is valued on its future payments. A non-performing note is valued on something else entirely: the property and the realistic recovery. When you ask us for a quote on an NPN, we're underwriting:
- The property's current value and condition — the ultimate source of recovery.
- The borrower's equity and intentions — whether a re-performing outcome (a modification that gets them paying again) is plausible, or whether recovery means taking the property back.
- The cost and timeline to foreclose — which depends heavily on whether the state uses judicial or non-judicial foreclosure. A non-judicial state like Texas (about 41–90 days) allows fast, low-cost recovery; a judicial state like Florida or New York can take many months to over a year.
- Senior liens, taxes, and title issues — anything ahead of the note reduces what's recoverable.
Because recovery is uncertain and takes time, NPNs trade at a substantial discount to the unpaid principal balance. That's the trade-off for getting cash now and walking away from the workout.
First and second liens
We consider both first-lien and second-lien non-performing notes. First liens are protected by their senior position. Second-lien NPNs are riskier — the first lien is paid before anything reaches the second — so they're valued more conservatively, but there's still a market for them, especially where the borrower has equity.
Why sell instead of foreclosing yourself?
Foreclosing is not a do-it-yourself project for most note holders. It involves strict statutory notice requirements, potential redemption and deficiency rules that vary by state, attorney involvement, carrying costs, and real timeline risk. Many sellers prefer a clean exit: a lump sum today instead of months of legal process with an uncertain outcome.
What to send us
For an accurate NPN quote, helpful documents include the note and recorded security instrument, the payment/default history, a recent property valuation or photos, the most recent title information, and any communications with the borrower. The more complete the picture, the faster and firmer the offer.
This page is general information about buying and selling non-performing notes, not legal advice. Foreclosure, redemption, and deficiency rules vary by state — verify the controlling statute and consult an attorney before acting on a specific note.
Frequently asked questions
How much can I get for a non-performing note?
It depends almost entirely on the property and the recovery picture: the home's value and condition, the borrower's equity, senior liens, and how fast and cheaply the state allows foreclosure. NPNs sell at a meaningful discount to the unpaid balance because the buyer takes on the time, cost, and uncertainty of recovery.
Do you buy second-lien non-performing notes?
Yes, we consider them. Second-lien NPNs are valued more conservatively because the first lien is paid before anything reaches the second. Where the borrower has equity above the senior lien, there's still real value.
Will you handle the foreclosure?
When we buy your note, the workout becomes ours. You receive a lump sum and are done — we take on any modification, deed-in-lieu, or foreclosure process and the costs and timeline that come with it.