What Is a Private Mortgage Note Buyer?
Private mortgage note buyers are businesses that purchase mortgage notes directly from individuals—unlike traditional banks or mortgage companies. Most individuals will only sell one or two notes in their lifetime. In contrast, according to SmartAsset, traditional lenders typically package and sell hundreds of notes each year.
Because of this scale, banks often don’t consider it worthwhile to purchase notes from individual sellers. Without private buyers, many note holders would have no way to convert their notes into cash. That’s where Quickity Closers comes in. As experienced note buyers, we help individuals unlock the value of their mortgage notes with fast, fair cash offers.
Why Should I Sell My Mortgage Note?
Note holders sell for a variety of financial reasons, including:
- Covering emergency expenses
- Building an emergency fund
- Paying off credit cards or other debt
- Making a down payment on a new home
- Handling property taxes or unexpected IRS bills
- Taking a well-deserved vacation
- Funding college tuition for a child or grandchild
- Renovating or remodeling a home
- Preferring a lump-sum payment over monthly installments
They also sell to avoid risks such as:
- Borrower job loss and missed payments
- Property loss due to unpaid taxes
- Fire damage from lack of hazard insurance
- IRS penalties from misreported interest
- Property abandonment and vandalism
Private mortgage note buyers like Quickity Closers offer a solution—turning uncertain future payments into secure, upfront cash.
Why Can’t I Sell My Real Estate Note for Its Full Value?
It all comes down to risk. Like banks, note buyers aim to minimize uncertainty. When purchasing a note, they exchange cash today for the promise of future payments. The longer the term, the greater the risk—economic downturns, job loss, or borrower default can all impact performance.
For example, while a borrower may be financially stable today, they could struggle to make payments ten years from now if the economy falters. Remember the global financial crisis of 2008? That’s why notes typically sell at a discount—buyers are factoring in the potential for future disruption.
For a deeper dive, check out our article: Potential Problems for Note Holders.
What If I Only Want to Sell Part of My Mortgage Note?
That’s called a partial purchase, and it’s often the best option for note holders. With a partial purchase, you receive cash upfront for a set number of future payments, while retaining ownership of the remaining balance. You continue receiving payments after the buyer has collected the agreed-upon portion.
This approach typically yields the highest value for your note and allows you to maintain long-term control.
Example of a Partial Purchase
Mortgage Note Details
- Remaining Balance: $140,000
- Monthly Payment: $1,700
Cash to Note Holder
- Now: $62,000 lump sum
- In 46 Months: $84,000 in remaining payments
Can I Sell My Mortgage Note After a Partial Purchase?
Yes! Many note holders choose to sell the remaining balance after a few years. If fewer than five years of payments remain, you may be eligible to sell the rest. Partial purchases often provide the best value while keeping future options open.
Why Do Partial Purchases Offer Better Pricing Than Full Cash Offers?
Because the buyer assumes less risk. In a partial purchase, the buyer receives priority payments over a shorter term. With reduced exposure, they can offer a higher price for the portion they buy—making it a win-win for both parties.
Are There Tax Benefits to Partial Purchases?
Absolutely. Partial purchases may qualify as installment sales, allowing you to spread income over time. This can reduce your immediate tax burden and help avoid higher tax brackets—making it a smart strategy for long-term planning.
How Can I Sell My Mortgage Note?
The first step is simple: request a free, no-obligation quote from Quickity Closers. We typically respond within 24 hours. Once you receive your quote, we’ll walk you through your options, answer your questions, and help you choose the best path forward.
Ready to get started? Call us at 1-855-784-2511 or visit our mortgage note quote page to begin. We look forward to working with you!
