What is a Note Buyer?
A note buyer is, quite simply, a person or entity that buys one of a variety of notes. A mortgage note buyer tends to buy notes where the security (collateral) for the note is some type of real estate like a house or a commercial building. This type of buyer might also be referred to as a real estate note buyer, a deed of trust buyer, or a note investor. A business note buyer deals with notes where the main collateral is a business, and there is little or no real estate involved.
In addition to houses and commercial buildings, a mortgage note buyer might also buy notes on mobile homes, land, or other property types. The note buyer is looking to purchase a note where the property is in good shape and the new owner of the property is likely to make on-time payments.