When someone sells a property with owner financing, holding the mortgage note often feels like a win-win:
✅ Predictable monthly income
✅ Interest earnings
✅ Passive cash flow
But here’s the truth few people talk about:
📉 Holding a mortgage note too long can quietly cost you more than you think.
Especially in a shifting market, the value of your note — and the reliability of your borrower — can change fast.
If you’re holding a promissory note and thinking it’s your safest bet, it might be time for a second look… before you get in over your head.
At We Buy Notes Lansing, we buy mortgage notes all across Michigan and beyond — and we do it fast, fair, and stress-free.
1. Property Values Can Drop — And So Does Your Note’s Value
Your mortgage note is backed by the value of the underlying property.
That means any decrease in property value puts your asset at risk.
If the market shifts and the property drops below the unpaid balance of the loan (underwater), the risk of borrower default skyrockets — and your note suddenly becomes a ticking time bomb.
When you choose to sell your mortgage note fast to a reputable buyer, you pass that risk off — and get paid now instead of gambling on the future.
In 2025, with market uncertainty and interest rate fluctuations, the phrase “wait and see” can become very expensive.
2. Foreclosure Costs Are Your Costs
Many note holders believe that “if the borrower defaults, I’ll just foreclose.”
It’s not that simple.
Foreclosure takes:
- Time (often 6–12 months minimum)
- Legal fees (ranging from $2,500 to $10,000+)
- Court hassles (depending on state laws)
- Mental bandwidth (stress, paperwork, borrower contact)
And if the property sits vacant during that time? You’re losing money and value.
When you choose to sell your mortgage note fast to a reputable buyer, you pass that risk off — and get paid now instead of gambling on the future.
3. Life Happens — And Borrowers Change
Maybe your borrower had a great job when you originated the note. Maybe they still do.
But life can change fast: layoffs, medical emergencies, divorce, or rising debt can quickly turn a “great borrower” into a risk.
By holding too long, you’re betting not just on real estate — but on the borrower’s life staying stable for years.
4. Inflation Eats Your Returns
Let’s say your note brings in $400 per month.
In today’s economy, that money buys less every year.
If your note is amortized over 15 or 30 years, the real value of your cash flow shrinks year after year, even though the dollar amount stays the same.
In contrast, selling now gives you a lump sum at today’s dollar value — which you can reinvest, use, or protect against inflation more effectively.
5. Liquidity Matters More Than You Think
Holding a note ties up your wealth.
You’re earning — but you’re not flexible.
What if you suddenly need money for:
- A new investment opportunity
- Emergency expenses
- Family needs
- Retirement planning
Selling a mortgage note gives you access to cash now, instead of waiting on 240 more payments from a borrower who may or may not stay consistent.
6. The Market Won’t Wait for You
Here’s the kicker:
The longer you wait, the harder it might become to get top dollar for your note.
Buyers factor in:
- Note seasoning
- Borrower performance
- Economic outlook
- Property location and condition
- LTV ratio (Loan-to-Value)
If any of those decline while you’re holding the note, expect lower offers — or no offers at all.
This is why many smart investors and property sellers choose to cash out now, while note buyers are still actively making strong bids.
How to Avoid the Hidden Costs: Sell Your Mortgage Note Fast
If any of this feels uncomfortably familiar, don’t worry — you’re not stuck.
You have options. Good ones.
There are many companies that buy promissory notes — but not all offer the same level of service or transparency.
At We Buy Notes Lansing, we specialize in helping note holders avoid future risk and unlock the cash they deserve today.
- Free no-obligation evaluations
- Fast, transparent closing
- Cash offers that reflect your note’s true market value
Wondering “how do I sell a mortgage note”? Our simple process can help…
Even if you’re just curious what your note might be worth, we’ll walk you through every step — no pressure, just clarity.
📞 Ready to Sell or Just Want to Know Your Options?
Call us today at 989-787-0597 or visit WeBuyNotesLansing.com to get started.
Because holding your note too long could cost more than you think — and the best time to act is before the market changes again.
We buy mortgage notes across Michigan and beyond — and we do it fast, fair, and stress-free.