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.
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.