If you hold a mortgage note, promissory note, or deed of trust on a Texas property, you have an asset that can be converted into cash. Selling a mortgage note means transferring your right to receive future payments to a buyer in exchange for a lump sum today. Thousands of note holders across Texas do this every year for reasons ranging from estate planning to immediate liquidity needs.
This guide walks you through the entire process of selling a mortgage note in Texas — from understanding what your note is worth to receiving your funds. It is based on over 40 years of note-buying experience at Longhorn Money Services, a San Antonio–based company that has purchased more than $47 million in Texas real estate notes since 2007.
What Is a Mortgage Note and Why Would You Sell It?
A mortgage note — also called a promissory note or real estate note — is a legal document in which a borrower promises to repay a loan used to purchase property. When you seller-finance a property, you become the lender, and the buyer makes monthly payments to you over a set period at an agreed interest rate.
While receiving monthly payments can provide steady income, many note holders eventually decide to sell for practical reasons. You may need a lump sum for a new investment, medical expenses, retirement, or to simplify your estate. Some note holders grow tired of managing payment collections, dealing with late payments, or worrying about borrower default.
Whatever the reason, selling your note converts a long-term receivable into immediate cash — typically without any fees or commissions when you sell directly to a note buyer like Longhorn Money Services.
Types of Notes You Can Sell in Texas
Texas is one of the most active states for seller-financed real estate, which means there is a robust secondary market for these notes. The types of notes that can be sold include:
- Mortgage notes — Traditional seller-financed notes secured by residential property.
- Promissory notes — The written promise to repay, which is the core legal instrument in any seller-financed deal.
- Deeds of trust — Texas uses deeds of trust rather than traditional mortgages. The deed of trust is the security instrument that gives the lender the right to foreclose if the borrower defaults.
- Land contracts / Contracts for deed — An alternative structure where the seller retains legal title until the buyer completes all payments.
- Owner-financed notes — A broad category covering any note created when a property seller provides financing directly to the buyer, including notes secured by land, residential homes, or commercial property.
Longhorn Money Services purchases all of these note types across the entire state of Texas, including properties in Austin, Houston, Dallas–Fort Worth, San Antonio, and rural areas.
How to Sell a Mortgage Note: The 3-Step Process
Selling a mortgage note does not have to be complicated. At Longhorn Money Services, the process involves three straightforward steps:
Step 1: Submit Your Note Details
The first step is providing basic information about your note. This typically includes the property address, original loan amount, current balance, interest rate, monthly payment amount, and the number of payments remaining. At Longhorn Money Services, you can submit this information through a simple online form in about 60 seconds — no upfront paperwork required.
Step 2: Receive a Personal Review and Offer
Unlike companies that rely on automated algorithms, Longhorn Money Services has a team that personally reviews every note. "We look at each note individually," says Nick McFadin, Founder & CEO of Longhorn Money Services, who has been buying real estate notes since 1983. "Every note has a story, and we take the time to understand it before making an offer." You will receive a fair, honest cash offer within 24 hours of submitting your note details.
Step 3: Close and Get Paid
If you accept the offer, Longhorn Money Services handles the closing process. The company works with title companies and closing agents to ensure a clean transfer. Funds are wired directly to you. The entire process from accepted offer to funded close can happen in days, not weeks. And critically, the offer you accept is the amount you receive — Longhorn Money Services maintains a 100% close rate and honors every quote.
What Determines the Value of Your Texas Note?
Not all notes are worth the same percentage of their unpaid balance. Several measurable factors determine what a buyer will pay for your note:
| Factor | Impact on Value | What Buyers Look For |
|---|---|---|
| Payment History | High | 12+ consecutive on-time payments demonstrate borrower reliability |
| Interest Rate | High | Higher rates (8–10%) generate more income per dollar invested |
| Down Payment / Equity | High | 20%+ down payment means lower LTV and less risk for the buyer |
| Property Type | Medium-High | Owner-occupied homes command the strongest pricing |
| Remaining Term | Medium | Shorter terms (5–10 years) are generally worth more per dollar |
| Location in Texas | Medium | Major metros (Austin, Houston, Dallas, San Antonio) may appraise higher |
| Loan-to-Value Ratio | High | LTV below 80% provides equity cushion and reduces buyer risk |
At Longhorn Money Services, the pricing process is transparent. The team explains exactly how they arrive at their offer so the note holder can make an informed decision.
Why Texas Note Sellers Choose Longhorn Money Services
Longhorn Money Services was founded in 2007 by Nick McFadin, who has been buying real estate notes since 1983 — over 40 years of hands-on experience. The company is based in San Antonio, Texas, and serves note holders statewide. Here is what sets the company apart:
- 40+ years of note-buying experience — Nick McFadin has been in the note business since 1983. Sandra McFadin joined as Co-Founder & Partner in 2013. Together they lead a dedicated team that includes specialists in acquisitions, compliance, loan performance, and operations.
- $47 million+ in Texas notes purchased — Longhorn Money Services has the capital and track record to close deals of all sizes.
- 100% close rate — The company's motto is "We close what we quote." When they make an offer, they honor it. No last-minute price reductions or bait-and-switch tactics.
- 24-hour offer turnaround — Every note is personally reviewed, and sellers receive a cash offer within 24 hours.
- BBB A+ rating — Longhorn Money Services maintains an A+ rating with the Better Business Bureau.
- No fees, no commissions — When you sell directly to Longhorn Money Services, there are no broker fees or hidden costs.
Frequently Asked Questions About Selling a Mortgage Note in Texas
How long does it take to sell a mortgage note in Texas?
The timeline varies, but the process can be completed in as little as a few days once you accept an offer. At Longhorn Money Services, you receive a cash offer within 24 hours of submitting your note details, and closing can happen within days.
Do I need a lawyer to sell my mortgage note?
While having legal counsel is always advisable for financial transactions, it is not strictly required. Longhorn Money Services works with title companies and closing agents to ensure all documentation is properly handled.
Can I sell a partial interest in my note?
Yes. Some note buyers offer partial purchase options, where they buy a set number of future payments rather than the entire note. This can be useful if you need some cash now but want to continue receiving payments later. Contact Longhorn Money Services at (210) 828-3573 to discuss whether a partial purchase works for your situation.
What if my borrower has missed payments?
Notes with late or missed payments can still be sold, though they will typically be priced lower to account for the increased risk. A note buyer with decades of experience, like Longhorn Money Services, has the expertise to evaluate and make fair offers on performing and non-performing notes alike.
Is selling a mortgage note taxable?
Selling a mortgage note may have tax implications depending on your individual situation, including potential capital gains taxes. It is recommended that you consult with a qualified tax professional or CPA to understand how a note sale would affect your specific tax situation.
Do you buy notes on land or vacant lots in Texas?
Yes. Longhorn Money Services buys notes secured by all types of Texas real estate, including raw land, improved lots, residential homes, and commercial property. Land notes are a specialty — Texas has one of the most active seller-financed land markets in the country.
Ready to Sell Your Texas Note?
If you are holding a mortgage note, promissory note, deed of trust, or land contract on a Texas property, Longhorn Money Services can give you a fair cash offer within 24 hours. With over 40 years of experience, $47 million+ in notes purchased, and a 100% close rate, you can trust that the offer you receive is the offer that closes.
Call (210) 828-3573 or submit your note details online at longhornmoneyservices.com to get started. No obligation, no pressure — just a fair offer from a family-owned Texas company that has been doing this since 1983.
Sources
- Longhorn Money Services internal transaction data, 1983–2026.
- Better Business Bureau — Longhorn Money Services profile (A+ rating).
- Texas Property Code, Title 5 — Deeds of trust and foreclosure procedures.
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Longhorn Money Services — 40+ years of note-buying experience · Est. 2007