The short answer
Investor Trustee Services acquires non-performing residential mortgage notes secured by Florida property: loans that are delinquent, in default, in foreclosure, or where the borrower is in bankruptcy. That includes consumer mortgages and business-purpose loans to investors: hard money, private money, bridge and fix-and-flip loans. We buy single assets and small pools, for our own account, from private note holders, hard money and private lenders, estates, banks, credit unions, servicers and bankruptcy trustees.
Each note is priced individually after review of the collateral file, the payment history and the property. Bids are made in writing, every purchase is direct, with Investor Trustee Services as the buyer of record, and closings run through a title or escrow agent.
After closing, we assume the borrower relationship, loss mitigation and any foreclosure, through a licensed servicer and Florida counsel.
Acquisition criteria
We buy whole notes that meet these criteria.
| Criteria | |
|---|---|
| Collateral | Single-family residential property in Florida |
| Lien position | First lien |
| Loan type | Consumer mortgages, and business-purpose loans to investors: hard money, private money, bridge and fix-and-flip |
| Performance status | Delinquent; in monetary or non-monetary default, such as unpaid taxes or lapsed insurance; in foreclosure at any stage before sale; borrower in bankruptcy; or matured with the balloon unpaid |
| Occupancy and condition | Occupied or vacant, in any condition, including rehabs that stalled mid-construction |
| Transaction size | Single assets and small pools |
| Interest purchased | The whole note and mortgage, with the loan documents that go with them |
| Not purchased | Performing notes, partials and participations, second liens, agreements for deed, land, commercial property, and collateral outside Florida |
Who we buy from
We work with five kinds of sellers. Each has its own authority to sell, and we structure the purchase around it.
| Seller | Authority to sell | What we'll ask for |
|---|---|---|
| Private note holders, including sellers who carried financing | The holder of the note | The original note, the recorded mortgage and the payment history |
| Hard money and private lenders, including lending funds | The lender or fund that holds the note, under a loan sale agreement | The loan agreement, any guaranty, the draw history and the collateral file |
| Estates and heirs | A note is generally personal property, so the personal representative can usually sell it without a separate court order, unless the will or the court provides otherwise (Fla. Stat. § 733.612(5), (21)). Heirs who received the note by distribution sell it directly | Letters of administration, or the distribution documents |
| Banks, credit unions and servicers | The owner of record, under a loan sale agreement, with servicing transferred to our servicer | A data tape, the collateral file and servicing notes |
| Bankruptcy trustees | A sale outside the ordinary course of business requires notice to creditors and an opportunity for a hearing; if no one objects in time, the court can approve it without one (11 U.S.C. §§ 363(b)(1), 102(1)) | Your case details. We sign subject to court approval and close after the sale order is entered and its 14-day stay has run, unless the court waives the stay (Fed. R. Bankr. P. 6004(h)) |
How we price a non-performing note
Pricing follows the expected resolution: what the collateral is worth, how the loan will be resolved, and how long that will take. The main inputs:
- Collateral value and condition: a current valuation of the property, its condition and its occupancy.
- Balance against value: unpaid principal, accrued interest, and escrow and corporate advances, measured against the property's value.
- Payment history: the date and amount of the last payment, any prior workouts, and the borrower's capacity to reinstate.
- Foreclosure status: Florida forecloses judicially (Fla. Stat. § 702.01), so a filed and active case carries more value than one not yet started.
- The collateral file: a foreclosing plaintiff must plead that it holds the original note, or attach a lost-note affidavit, and a lost note requires adequate protection such as a bond before judgment (Fla. Stat. §§ 702.015, 702.11). A complete file with the original note and an unbroken chain of endorsements and assignments prices higher.
- Rehab status: for a fix-and-flip or bridge loan, the stage of construction, open permits, any undisbursed holdback, and whether the mortgage was recorded before any notice of commencement. Contractor, subcontractor and supplier liens take priority from the recording of the notice of commencement over a mortgage recorded after it, while a mortgage recorded before the notice keeps its priority, including for funds disbursed later (Fla. Stat. § 713.07(2)–(3)). A notice of commencement is void if work doesn't begin within 90 days, and has no effect against a mortgage recorded more than 1 year after it, unless the notice states a later date (Fla. Stat. § 713.13(2), (6)).
- Rate, fees and guaranty: the note rate, points, extension fees and default interest, reviewed against Florida's usury limits (Fla. Stat. §§ 687.02, 687.03, 687.071), and who guaranteed the loan.
- Limitations: an action to foreclose a mortgage carries a 5-year limitations period (Fla. Stat. § 95.11(2)(c)), and the lien ends 5 years after the maturity date when that date appears in the record (Fla. Stat. § 95.281). Older defaults and matured notes need a closer look, so share those dates up front.
- Senior and competing liens: unpaid property taxes are a first lien, superior to all other liens (Fla. Stat. § 197.122), and association, code enforcement and other liens can affect recovery.
- Bankruptcy: if the borrower has filed, the chapter, the plan and the treatment of the claim.
How a note sale works
- Submission. Send the basics through the form or to the desk: unpaid balance, rate, last payment date, property location, foreclosure and bankruptcy status, and whether you hold the original note. Institutions and lending funds can send a data tape.
- Review. We review the collateral file, the payment history, title and the property, and tell you what else we need to price the note.
- Written bid. Every bid is in writing. There's no set timeline: some notes price quickly, others need a title search or a review of the court file first.
- Purchase agreement and due diligence. We sign a purchase agreement, subject to court approval where a trustee or court must approve the sale, and complete our review of the collateral file.
- Closing. Closing runs through a title or escrow agent. You endorse the note to us or sign an allonge, sign an assignment of mortgage and deliver the original note, and funds are released at closing. The assignment is recorded: an unrecorded assignment isn't effective against creditors or later purchasers for value without notice (Fla. Stat. § 701.02).
- Transfer. Servicing moves to our servicer, and in a pending foreclosure our counsel steps into the case. For a consumer loan, including a seller-financed note, we send the borrower the notice of transfer that federal law requires of a new owner within 30 days (12 C.F.R. § 1026.39). Loans to an LLC or other entity, and loans made primarily for a business purpose, fall outside that rule (12 C.F.R. § 1026.3(a)); for a loan to an individual, we confirm the purpose from the loan file. Either way, the borrower is told of the transfer.
The collateral file
Have these ready, or tell us what's missing:
- The original promissory note, with any allonges and endorsements
- The recorded mortgage and every recorded assignment
- The payment history, including the date and amount of the last payment
- The closing statement and title policy from the original loan
- Tax and insurance status, and any advances made
- Default and demand letters, and any modification, forbearance or reinstatement agreements
- For a business-purpose loan: the loan agreement, any guaranty, the borrower entity's documents, the draw history, the budget and scope of work, and the original appraisal or after-repair value report
- For a rehab: permits, any notice of commencement, contractor lien waivers, and any notice the lender gave the contractor when it stopped funding draws
- If a foreclosure is filed: the case number, county and docket status
- If the borrower is in bankruptcy: the case number and chapter
- For an estate: the letters of administration, or the distribution documents
- For a trustee: the case number and your appointment
- For institutions and lending funds: a data tape and servicing notes
A missing original note doesn't rule out a sale. A buyer can enforce a lost note it acquired from the person entitled to enforce it when it was lost (Fla. Stat. § 673.3091), but enforcement takes an affidavit and court-ordered protection, which lowers the price.
Submit a note for review
Questions note sellers ask
Who buys non-performing mortgage notes?
Funds and institutional investors that bid on pools, marketplaces that list notes for other buyers, and direct buyers that purchase single assets and small pools for their own account. Investor Trustee Services is a direct buyer, so you deal with one counterparty from bid to closing.
How do I sell a mortgage note?
Submit the basics, provide the collateral file for review, and accept a written bid. Closing runs through a title or escrow agent: you endorse the note or sign an allonge, assign the mortgage and deliver the original note against payment.
Can I sell a note if the borrower has stopped paying?
Yes. That's the core of what we buy. A non-performing note trades at a discount to its balance because the buyer takes on the time, legal cost and risk of resolving it.
Can a note be sold during a pending foreclosure?
Yes, at any stage before the sale. After closing, our counsel steps into the case.
Do you buy defaulted hard money and private loans?
Yes. We buy non-performing first-lien hard money, private money, bridge and fix-and-flip loans on Florida residential property, including loans past maturity and rehabs that stalled. Tell us at the start about any undisbursed holdback or remaining draw obligation; it's part of the review.
What if the original note is lost?
It can still be sold. Enforcement takes a lost-note affidavit and court-ordered adequate protection, and the price reflects that (Fla. Stat. §§ 673.3091, 702.015, 702.11).
Does an estate or a trustee need court approval to sell?
A personal representative can usually sell a note without a separate court order, unless the will or the court provides otherwise (Fla. Stat. § 733.612(5), (21)). A bankruptcy trustee's sale outside the ordinary course requires notice to creditors and an opportunity for a hearing; if no one objects in time, the court can approve it without one (11 U.S.C. §§ 363(b)(1), 102(1)).
Do you buy performing notes or partials?
No. We buy whole, non-performing first-lien notes on Florida residential property.
Sources
- Florida Statutes § 95.11 — Limitations other than for the recovery of real property
- Florida Statutes § 95.281 — Limitations; instruments encumbering real property
- Florida Statutes § 197.122 — Lien of taxes
- Florida Statutes § 673.3091 — Lost, destroyed or stolen instruments
- Florida Statutes § 687.02 — Usurious contracts
- Florida Statutes § 687.03 — Unlawful rates of interest defined
- Florida Statutes § 687.071 — Criminal usury
- Florida Statutes § 701.02 — Assignment of mortgages
- Florida Statutes ch. 702 (2025) — Foreclosure of mortgages, incl. §§ 702.01, 702.015, 702.11
- Florida Statutes § 713.07 — Priority of construction liens
- Florida Statutes § 713.13 — Notice of commencement
- Florida Statutes § 733.612 — Transactions authorized for the personal representative
- 11 U.S.C. § 102 — Rules of construction, incl. "after notice and a hearing"
- 11 U.S.C. § 363 — Use, sale or lease of property of the estate
- Federal Rule of Bankruptcy Procedure 6004 — Use, sale or lease of property
- 12 C.F.R. § 1026.3 — Exempt transactions, incl. business-purpose credit (CFPB)
- 12 C.F.R. § 1026.39 — Mortgage transfer disclosures (CFPB)
This page is general information as of October 2026, not legal, tax or investment advice. Investor Trustee Services purchases notes for its own account; it is not a lender, a law firm, a mortgage broker or a loan servicer. All bids are subject to review of the note, the collateral file, title and the property.