Note brokers find note holders through county records that show a private person as the lender, through referrals from professionals who meet holders in their work, and through published information that holders find for themselves.
If a broker has written to you or called, and you wondered how they knew you held a note, the answer is below. If you are learning the business, the same sections describe the routes that exist, what each one demands and the lines a broker should not cross.
Why note holders are hard to find
Nobody keeps a list of people who hold private notes. A seller-financed note is a private arrangement between two people, there is no register of note holders, and a person receiving payments on a house they sold may never have thought of themselves as holding a “note” at all.
Finding a holder is also only half of it, because a holder whose payments arrive on time has no reason to sell. The broker is really looking for the few whose circumstances have changed: someone retiring, an heir who needs to divide an estate, a holder whose payer has started paying late, or someone who needs a lump sum for another purchase. That makes this the slow part of the business, and it rewards patience more than volume.
Public records
When a note is secured by real estate, the mortgage or deed of trust is normally recorded with the county where the property sits, and the record is public. It names the borrower and the lender. A bank as lender is of no interest to a note broker, but a private individual, a family trust or a small company in that position suggests a seller-financed note.
Brokers search these records county by county, or buy lists from companies that compile them. If you received an unsolicited letter about your note, a search of this kind is the likely origin.
The records have limits. They show that a note existed on the day it was recorded and nothing about whether it has since been paid off, sold or modified. The lender’s address may be years out of date. Notes that were never recorded, and notes not secured by real estate such as a business note, do not appear at all.
Referrals from professionals
Some people meet note holders in the normal course of their work, at the point where a holder is likely to need help.
| Who | When they meet a note holder |
|---|---|
| Estate and probate attorneys | When a note turns up among a client’s assets and heirs need cash to divide |
| Accountants and tax preparers | When they report a client’s interest income from a note each year |
| Real estate agents | When they close a sale with seller financing |
| Title and escrow officers | When they close the original sale and record the lien |
| Loan servicers | When a holder they collect for asks about selling |
| Business brokers | When a business sells and the owner carries a note |
| Financial planners | When a client’s retirement plan depends on a note |
A referral from one of these people carries trust that a cold letter cannot, and it takes a long time to earn. Their own name goes with the introduction, so a professional will only send a client to a broker they believe will treat that client well.
There are limits on this route as well. Professionals owe duties to their clients, and their own professional rules may restrict or forbid accepting a referral fee, so a broker should never assume a fee is welcome. A client’s details should not be passed on without the client’s permission either.
Being found
The third route reverses the search. A holder who has decided to look into selling goes online and reads, and finds the broker who has published clear, honest answers to the questions holders ask.
This site works that way. We write down how notes are priced, what a sale involves and when keeping the note is the better choice, and a holder who wants a price after reading can send us the note’s details. The holder arrives already interested and already informed. The cost to the broker is the work of writing something worth reading and the wait before anyone finds it.
Direct outreach
Letters, postcards, telephone calls, email and advertising all get used, the letter to a holder found in the public records among them.
Quality varies widely. One mailing is a plain note saying who the broker is and what they do. Another is dressed up to look like a bill, a legal notice or a letter from the holder’s own servicer, and some quote a price for a note the sender has never seen.
If you are a holder, a letter proves only that your name is in a public record. Judge the sender by what happens when you reply, and check them against note buyer red flags and scams.
The rules a broker has to respect
Looking for note holders is marketing, and marketing is regulated. The rules differ by state and by method, and nothing in this section is legal advice, so a broker should take each item to an attorney before starting.
- Telephone and text rules. Unsolicited calls and texts are restricted at federal and state level, and do-not-call lists are part of that.
- Email rules. Commercial email has its own requirements on identifying the sender and letting people opt out.
- Mail solicitation rules. A mailing made to resemble a bill or an official notice invites trouble. Ask what your state says about solicitations by mail.
- Licensing. Holding yourself out as someone who arranges or buys certain loans may need a license in some states. See what to check in your state.
- Privacy. A holder’s financial details, and their payer’s, are sensitive. Share them only with people who need them to price the note.
What good outreach looks like
Whatever the route, the same standards apply.
- Say who you are, and say that you are a broker and not the end buyer if that is the case.
- Hold back any price until you have seen the note, and offer to price it once you have the facts.
- Leave deadlines out of it. A note that is worth selling today will still be worth selling next month.
- Tell the holder that keeping the note is one of their options.
- Take no for an answer the first time.
These standards cost nothing to meet. A holder who was treated with respect has a reason to call the same broker back in two years, when their situation changes.
If a broker has contacted you
You owe them nothing, and replying commits you to nothing either. If you do reply, ask whether they would buy the note themselves or take it to someone else, and ask them to hold any price until they have seen your documents. From there the sale should follow the steps a note broker works through, and the words any quote will use are in the note basics guide.
Doing nothing is a complete answer too. A note that is paying as agreed does not become harder to sell because a letter went unanswered, and you can raise the question yourself, with someone you chose, in a year when selling suits you.
Related questions
How did a note broker get my name and address?
Most likely from the county records. A mortgage or deed of trust is a public document that names the lender, and when the lender is a private person a broker may assume a seller-financed note exists. It does not mean anyone has seen your note.
Do I have to respond to a letter offering to buy my note?
No. A letter creates no obligation, and the sender may know nothing about your note beyond the public record. If you are curious about the value, ask more than one party and compare.
Can a broker find notes that are not secured by real estate?
Not through land records, because those notes are not recorded there. A business note comes to a broker through a referral from a business broker, attorney or accountant, or when the holder goes looking for a buyer.