Your original mortgage note is one of the most important documents from a seller-financed property sale. It states the amount owed, interest rate, payment terms, and the buyer's promise to repay you.
Keep the original somewhere secure and easy to locate. A copy is useful, but losing the signed original can create extra work if you later sell the note or need to prove your right to enforce it.
A promissory note is a written promise to pay. It may also qualify as a negotiable instrument under applicable law.
When a mortgage note is sold, the original note is commonly delivered to the purchaser as part of the transfer.
An endorsement may appear on the back of the original note, similar to signing the back of a check. In some transactions, the endorsement is placed on an allonge, which is a separate sheet attached to the note.
A simple endorsement may look similar to:
Sample Note Endorsement on Back of Original Mortgage Note
Pay to the order of, (Insert name of investor), without recourse.
Dated this ____ day of _______, 2011.
(Seller Signs and Dates)
The exact transfer documents and wording depend on the transaction and applicable law, so the closing or legal professionals handling the sale should prepare them.
The Uniform Commercial Code explains that a negotiable instrument may be transferred by delivery, and an endorsement may be required for the transferee to become its holder. See UCC Section 3-203 .
The promissory note and the mortgage or deed of trust are related, but they are not the same document.
A mortgage or deed of trust is typically recorded in local land records. If your copy is lost, a recorded copy can often be obtained from the county recorder or other local recording office.
The original promissory note usually is not recorded. That makes keeping track of the signed original especially important.
The CFPB also identifies the promissory note and mortgage or deed of trust as key documents borrowers should retain after closing. CFPB: Documents to Keep After Closing.
A mortgage note buyer will normally want to review the note, payment history, security document, and other closing records during due diligence.
Having the original note available can make the transfer easier and reduce questions about ownership and documentation.
This matters whether you are considering selling the entire note or only part of the future payments.
Learn about those options in Can I Sell Part of My Mortgage Note?
Already holding a seller-financed mortgage note? We can review the note and show you what a full or partial sale may look like.
There is no cost to find out what your note is worth, and there's no obligation to sell.
The goal is simple: protect the original from fire, water, theft, and being accidentally thrown away while making sure you or your family can find it.
Common storage options include:
Store electronic or paper copies separately from the original and keep the rest of the note file organized.
See How Payment History Affects Your Mortgage Note's Value for a simple recordkeeping checklist.
A lost original does not automatically erase the debt, but it can make a sale or enforcement more complicated.
Depending on the circumstances, you may be asked for:
UCC Section 3-309 provides a process that may allow certain lost, destroyed, or stolen instruments to be enforced, but the person seeking enforcement must prove the terms and the right to enforce the note. Additional protections may also be required.
Some note buyers may consider a transaction involving a copy and a lost-note affidavit. Others may require additional documentation or may decline the note. The requirements depend on the note, buyer, state law, and circumstances.
Can't find your original note? You can still tell us what you have. We'll review the documents and explain what may be needed before a full or partial note purchase can move forward.
There is no cost to ask, and no obligation to sell.
A note buyer will commonly request the original signed promissory note during a sale. If it is missing, a transaction may still be possible, but additional documents such as a copy and lost-note affidavit may be required.
A copy is useful for records, but it is not always treated the same as possession of the signed original. Keep copies separately, but protect the original whenever it is available.
An allonge is a separate sheet attached to a negotiable instrument that can contain an endorsement. It may be used when an endorsement is not placed directly on the original note.
Common options include a safe deposit box, a secure fire- and water-resistant safe, an attorney's document storage, or an appropriate third-party servicing company. Choose a location that protects the document while remaining accessible when needed.
Losing the original can create extra documentation and legal steps. Depending on the circumstances, a lost-note affidavit, copy of the note, supporting records, or other proof may be needed to establish the terms and right to enforce it.