A note sale is the sale and assignment of a loan to a buyer, who steps into the lender's position and takes the note, the lien, and the right to collect or resolve it. It gives the original lender a clean cash exit without taking the underlying property.
A note sale is one of the cleanest ways to resolve a problem credit: the lender converts the loan to cash and is out of the relationship, with no foreclosure and no OREO. See note sale vs. workout vs. foreclosure.
Why credits like this reach a workout desk: bank noncurrent commercial real-estate loans have risen while reserve coverage slips at community banks (FDIC Quarterly Banking Profile), and roughly $957 billion of commercial and multifamily mortgage debt was scheduled to mature in 2025 — against a total market of about $4.8–5.0 trillion, ~38% of it held by banks and thrifts (Mortgage Bankers Association). See the CRE distress statistics hub for the full figures and sources.
Primary sources: FDIC Quarterly Banking Profile, Mortgage Bankers Association, and interagency (FDIC / OCC / Federal Reserve) guidance on CRE loan accommodations and workouts. Figures are directional and updated periodically; confirm the latest release before relying on a specific number.
In a note sale the loan is sold to a buyer; in a discounted payoff the borrower (or a third party) settles the loan at a discount and the lien is released. Both give the lender a clean cash exit.
The note, the mortgage or deed of trust, guarantees, and the right to enforce — the buyer steps into the lender's shoes. See recourse vs. non-recourse.
Standing Bid Capital, directly and all-cash, $250K–$25M. Request a confidential review.