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Frequently Asked Questions

  • How do I sell my note?

    TXNB buys owner financed loans for our own account, as well as for private investors, hedge funds, pension plans, and institutional investors.

    We handle all details of the purchase process from negotiation to closing. Our staff will gather and review the lien documents, obtain an appraisal, work with the title company to clear any issues regarding title insurability, prepare closing documents and coordinate closing and funding.

    Once we have completed our due diligence, closing paperwork is prepared and sent to the title company. Funds are wired directly to the title company so you can pick up your proceeds at the closing.

  • What options do I have when selling mortgage notes?

    We have several programs available to purchase notes. Which one you choose really just depends on your cash needs and financial goals. Here is a description of each:

    • Full Purchase.  We buy all remaining payments on the note for a lump sum of cash, today.  This option gets you the most cash up front for your note, and we always buy "without recourse," which means if the note payors stop paying, we look to the real estate to recover our investment (and not our note seller!).
    • Partial Purchase.  We buy a specific number of payments and you retain rights to the remaining payments after our interest is satisfied.  For example, we may offer to buy the next 60 payments out of a 180 month note.  We would receive the next 60 payments and then the note would be reassigned to you with 120 payments left to collect.  While a partial purchase pays you a smaller amount of cash right now, the longer term payout can be significantly higher than selling the whole note. 
    • Custom Purchase.  There are many variations on full and partial purchases, but it all comes down to how we can best meet your immediate needs.  If you have a balloon payment we can make an offer to buy payments plus part of the balloon with you keeping the balance of the balloon.  We've also offered split disbursements where we buy the whole note and fund it in guaranteed installments, giving you more money over time than what you would realize up front on a Full Purchase.
  • Will I receive the full balance? Is there a discount?

    Although most notes are usually discounted, we do not have a standard percentage or fixed discount rate.  Each note is reviewed and priced on its own merits.  TXNB typically pays all the closing costs, so you don't have to worry about expenses such as title, appraisal, or processing. No extra fees or commissions are taken from your proceeds.

  • I'm selling my property and creating a new note. What note terms will get the highest offer when I sell my note?

    The Short Answer:  20% down, 10% interest, 30 year amortization (monthly payments) with a 5 year balloon. See Best Terms to Use When Creating a Note for The Long Answer.

  • Why should I sell my note to Texas Note Buyer?

    TXNB has the knowledge and experience to overcome obstacles and get the deal closed. We have participated in thousands of note purchase transactions over the last 20+ years, and have experience with originations, inspections, collections, buying, fixing, and selling houses, and bulk REO and NPN purchases. We know how to fix title problems, work with difficult payors, handle incomplete or lost documentation, deal with heirs of an estate, and pretty much every other scenario you may have that will cause other note buyers to back out.

    We are a small, family business, and we treat each customer with integrity and respect. We buy the majority of our notes in Texas and most of our customers are referrals from happy people we've helped in the past. In fact, you're probably reading this because someone referred you to our site!

  • Why do you need to see my note to make me an offer?

    We can give you a rough "guesstimate" without a copy of your note.  However, reviewing the actual note gives us the loan date, first payment due date, exact loan amount, exact interest rate, alerts us to the presence of a balloon payment or other special terms, gives us the names and addresses of both buyers and sellers, usually gives us the property address and legal description, gives us evidence that the deal was actually closed, and allows us to calculate the exact principal balance so we can give you an exact quote!

  • What do you need for a payment history?

    Ideally we'd like to see copies of deposit slips or a bank printout showing the amount and dates of the deposits that were made for the house payment. Cancelled checks from the buyers are also acceptable but harder to obtain. Copies of money order receipts will work, too.  We CAN NOT accept a receipt book, handwritten ledger, copies of checks without deposit slips, or a copy of the cash. If your loan is serviced by a licensed mortgage servicing company we can accept a copy of their pay history printout. 

  • How soon can we close?

    Closing typically occurs within 14 working days after receipt of your signed purchase agreement and copies of all requested documents.

  • What are the closing costs and who pays them?

    TXNB pays all closing costs when we buy a note. An exception to this is if your note has less than 3 months seasoning. We also do not pay the costs for any "curative" documents or title work needed to render your note marketable and insurable. In other words, we need title insurance and expect your interest in the note and mortgage to be recorded and free of anything that would prevent you from assigning your rights in the note and mortgage to us. If there are problems with the title that prevent you from assigning the note to our company, we'll help get them fixed, but you'll need to pay the fees if an attorney has to prepare a document and the associated recording fees. Typical expenses when purchasing a note are: appraisal ($300-450), title insurance (approximately 1% of note balance), escrow fee ($200-300), recording fees ($50), overnight fees ($50), tax certificates ($50), and credit report ($20).

  • My buyers have been late a few times and even missed a payment. Can I still sell my note?

    We can still buy your note. Late payments are only a problem for us if they are paid more than 30 days after the due date. If your buyer completely skipped a payment and the missed payment is within the last 12 months, we'll need an explanation and may need to document the circumstances which caused the problem. 

  • Do you do simultaneous closings?

    Yes and no. We require there to be at least 90 days seasoning and 3 payments made as scheduled before we purchase a note, but this requirement can be satisfied with 90 days seasoning and 3 payments made under a Lease w/Option to Purchase agreement.

  • Do you buy lease w/option to purchase contracts?

    Yes, with conditions. We will help you convert the Lease w/Option to Purchase Contract into a Note and Deed of Trust or Mortgage that we can buy. We'll use the lease agreement to establish seasoning as long as the terms on the conversion documents do not change.

    The Lease w/Option to Purchase Contract must specifically outline the terms: sales price, down payment, loan amount, interest rate, payment amount, amortization term, and must promise a deed when paid in full. Once the lease agreement is converted to a Note and Deed of Trust or Mortgage, the conversion documents can be signed and held in escrow pending our funding of the note purchase.


What We Do

Are you collecting payments?  Why wait years to collect small monthly payments when you can sell mortgage notes you currently hold for the cash you need today?

We are note buyers in Texas, seeking Owner Financed Real Estate Notes, Promissory Notes, Deeds of Trusts, Mortgages, Contracts for Deeds, and Land Contracts for our own portfolio, as well as for other private investors, hedge funds, pension plans, and institutional investors.

We pay cash for notes secured by both residential and commercial real estate, notes created from the sale of a business, and most any other type of payment stream.

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We Buy Notes Secured by:

  • Single Family Homes
  • Multi Family Housing
  • Condos
  • Mobile Homes with Land
  • Raw and Improved Land
  • Retail Commercial
  • Light Industrial Commercial
  • Commercial with Corporate Payor
  • Churches
  • Service Stations
  • Non-Performing, Distressed Paper
  • Hard Money Loans
  • Structured Settlements
  • Annuities
  • Lottery Winnings
  • Business Notes (no real estate)
  • Most any type of contractual cash flow..
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