A deed of trust is a three-party security instrument — used in place of a mortgage in many states — where a neutral trustee holds legal title to the property until the loan is paid off. If you hold a note secured by a deed of trust and want cash now, Cassidy Investment Group buys deeds of trust directly, whole or partial, across Indiana and nationwide.
Key Takeaways
- A deed of trust involves three parties: the borrower, the lender (beneficiary), and a neutral trustee who holds title.
- It serves the same basic purpose as a mortgage — securing a loan with real estate — but many states use it instead of a mortgage.
- Deeds of trust often allow non-judicial foreclosure, which can be faster than the judicial process required for mortgages in some states.
- You can sell the whole note secured by the deed of trust, or a partial, for cash now.
- We buy performing and non-performing notes secured by deeds of trust on residential and land property.
What Is a Deed of Trust?
A deed of trust secures a loan with real estate, similar to a mortgage, but it involves a third party: a neutral trustee who holds legal title to the property until the loan is repaid. The three parties are the borrower (trustor), the lender (beneficiary), and the trustee. Many states use deeds of trust instead of mortgages, particularly because they often allow a faster, non-judicial foreclosure process if the borrower defaults.
Why Sell a Note Secured by a Deed of Trust?
Just like any seller-financed note, converting it to cash lets you access a lump sum now instead of collecting payments for years, hand off the responsibility of tracking payments and insurance, and reduce your long-term exposure to the loan. Selling doesn’t change your borrower’s terms — they continue paying under the same schedule, simply to the new beneficiary.
What Determines Your Deed of Trust Note’s Value?
Pricing follows the same core factors as any seller-financed note:
A seasoned, on-time record supports a stronger price.
The borrower’s equity cushion relative to the property’s value.
Whether the deed of trust is in first or a junior position.
Condition, location, and marketability of the collateral.
How to Sell Your Deed of Trust Note
The process mirrors a standard note sale, with your documents reflecting the trustee arrangement:
| Step | What Happens |
|---|---|
| 1. Free quote | Share details about the note, deed of trust, and property |
| 2. Written offer | Receive a clear, no-obligation offer to review |
| 3. Due diligence | We verify the note, trustee arrangement, and payment history |
| 4. Closing | Sign the assignment and receive your funds |
Have a mortgage note? Find out what it’s worth.
Cassidy Investment Group buys mortgage notes, trust deeds, and land contracts in Indiana and nationwide. Get a free, no-obligation quote, or sell all or part of your note for a lump sum.
Not ready yet? Join Note Talks, our free monthly Q&A on Zoom — the last Thursday of every month at 12:00pm EST.Frequently Asked Questions
What’s the difference between a mortgage and a deed of trust?
A mortgage is a two-party agreement between borrower and lender. A deed of trust adds a third party — a trustee — who holds legal title until the loan is repaid. Many states use one or the other, and the practical effect for a note holder is similar.
Can I sell a note secured by a deed of trust that isn’t being paid on time?
Often, yes. We buy non-performing notes secured by deeds of trust as well as performing ones, with pricing reflecting the added risk.
Does the trustee need to be involved in the sale?
The trustee’s role continues after the sale since they still hold title until the loan is paid off. The sale itself is an assignment of the beneficial interest from you to the new buyer.
Can I sell only part of the note?
Yes. A partial sale lets you sell a set number of upcoming payments for cash now, with the rest reverting to you afterward.
Sources
- Consumer Financial Protection Bureau. Deed of trust and foreclosure guidance. consumerfinance.gov
Disclaimer: Cassidy Investment Group, LLC provides this content for general educational purposes only. It is not financial, investment, tax, or legal advice, and it does not constitute an offer to buy or sell any security or investment. Mortgage note transactions involve risk, and offers depend on the specifics of each note. Statistics cited reflect the sources and dates noted and may change over time. Consult qualified legal, tax, and financial professionals before making decisions about buying, selling, or investing in mortgage notes.