Your buyer stopped paying. Maybe it has been three months, maybe a year. Now you are looking at a foreclosure attorney, a court calendar, and a bill nobody can predict.
I have overseen land note foreclosures in most states, and I have seen my share of horror stories. Before you hire anyone, know that you have another option: sell the note to us as it is.
Do you buy non-performing land notes?
Yes. We buy defaulted land notes as is: behind on payments, in foreclosure, or in bankruptcy.
If your buyer has stopped paying on a land note, we can buy the note from you for cash and take over the problem: the collection, the foreclosure, and the attorneys. You stop paying legal bills and get your money out now instead of years from now.
Buyer stopped paying?
Send the property, the balance, and the payment history. We will tell you if we can buy it as is.
Get a Free Quote →What does a land note foreclosure really cost?
More than most note holders expect, because many foreclosure attorneys bill by the hour and a contested case has no ceiling.
A quiet foreclosure can be routine. A contested one is not. Every answer, motion, hearing, and delay adds hours, and on an hourly bill you pay for all of them. I have seen legal bills on contested land foreclosures run past $40,000, on land worth a fraction of what a house is worth.
Foreclosure also does not get you the land back. At the foreclosure sale, if someone else bids, you are paid what you are owed and the bidder gets the land. You only end up with the land if nobody outbids you.
Time adds cost too. In judicial foreclosure states the case runs through the courts, and that takes longer. See the foreclosure timeline for your state. While you wait, you may also have to pay the property taxes to protect your lien.
What happens if my buyer files bankruptcy?
The foreclosure stops, and the legal bills keep running.
A bankruptcy filing puts an automatic stay on collection and foreclosure. To move forward, your attorney has to go into bankruptcy court, and that is a second legal fight on top of the first. In my experience, borrowers in default file bankruptcy often, and I have watched bankruptcy filings run legal bills up until they ate all of the equity in the land. More in what if my land buyer files bankruptcy.
Should I foreclose or sell the note?
Foreclose if you can carry the legal bills and the wait, knowing a bidder at the sale may pay off the debt instead of you getting the land. Sell if you want the cash and the risk gone now.
| Sell the note to us | Foreclose yourself | |
|---|---|---|
| Cash | At closing | After the foreclosure sale if a bidder pays off the debt; if nobody outbids you, only once you resell the land |
| Legal bills | None for you | Yours, often billed by the hour |
| Contest or bankruptcy | Our problem | Your problem, and your bill |
| Your time | Send the basics, review an offer | Attorney calls and court dates, plus a resale if you end up with the land |
| The land | Not yours to deal with | A bidder may buy it at the sale; if not, it is yours to clean up, list, and sell |
In my experience, the note holders who regret their choice are rarely the ones who sold. They are the ones who foreclosed on a contested case and watched the fees pass what the note was worth.
How much will you pay for a non-performing note?
It is case by case: we look at the current value of the property and the amount owed on the loan.
A non-performing note is priced off the land, not the payments, because the payments stopped. We value the property ourselves from recent sales, weigh it against the balance and where the foreclosure stands, and make an offer. Asking costs nothing.
What land notes do you buy?
Promissory notes secured by a recorded mortgage or deed of trust on vacant land, with a balance of $25,000 or more.
- A promissory note with a recorded mortgage or deed of trust, not a land contract
- Balance of $25,000 or more, on vacant land of 2 acres or more
- Residential, rural, or agricultural land with legal access, not mostly wetland or flood zone
- Late, in foreclosure, or in bankruptcy
- Not in California, Hawaii, Louisiana, Maryland, New Jersey, New York, or Pennsylvania
The full list is in our note buying criteria. If your buyer is still paying, see sell your land note.
What do I need to send?
Just the basics: the property information, the loan balance, and the payment history.
- Property: the address or APN, county, and state.
- Loan balance: roughly what is owed today.
- Payment history: when the last payment came in, and where any foreclosure or bankruptcy stands.
Use the form below or text or call 302-526-0200. We ask for the rest only if we move forward.
Frequently Asked Questions
Do you buy non-performing land notes?
Yes. Damen Capital buys defaulted land notes as is: behind on payments, in foreclosure, or in bankruptcy. The note must be a promissory note secured by a recorded mortgage or deed of trust on vacant land, with a balance of $25,000 or more.
Will you buy a land note that is already in foreclosure?
Yes. We buy notes at any stage of foreclosure. Send the property information, the loan balance, and the payment history, and tell us where the case stands.
Will you buy a land note if my buyer filed bankruptcy?
Yes. We buy notes where the borrower has filed bankruptcy. A filing stops the foreclosure while the case runs, and the legal work to move forward can eat the equity in the land. Selling the note hands that problem to us.
How much will you pay for a non-performing note?
It is case by case. We look at the current value of the property and the amount owed on the loan, then make an offer. There is no fee to ask.
What do I need to send to sell a defaulted land note?
Just the basics: the property information, the loan balance, and the payment history. We ask for the rest only if we move forward.