If you hold a seller-financed mortgage note on a DC, suburban Maryland, or Northern Virginia property, you own a payment stream. What someone will pay for it depends on three things: the payer’s history, the collateral, and how long and costly it would be to enforce if payments stop. In the DMV, that last factor changes at every jurisdiction line. A Northern Virginia deed of trust can reach a trustee sale in a couple of months. A tenant-occupied DC rowhouse can take far longer to turn into cash, even after a sale.
Jaken Finance Group originates loans. We do not buy notes. We will not bid on your paper or service it. This guide explains how note buyers think about DMV collateral, what 2026 yield bands look like, and when originating a DSCR or hard money loan is the cheaper way to raise cash. The national framework is in the residential mortgage note buyers investor guide. The Illinois version is mortgage note buyers Chicago.
Where DC-area seller-financed notes come from
Common fact patterns we hear about:
- You sold a Petworth or Brookland rowhouse to a buyer who could not get bank financing and carried a first deed of trust
- You sold a Prince George’s County single-family home to an investor and took back paper to close faster
- You carried a second behind a bank loan to bridge a price gap (these discount hardest)
- You sold a Capitol Hill condo and financed the buyer because the building failed a condo questionnaire
Every buyer of your note will pull the property’s record before they bid. In DC that means the Office of Tax and Revenue tax record and Recorder of Deeds filings. In Maryland it means SDAT real property search. In Virginia it means the county assessor. Pull those yourself first. Buyers ask about tax class, homestead status, open liens, and whether the assessed value lags a recent renovation.
Enforcement clocks — why jurisdiction is in every bid
| Jurisdiction | Main path | Planning timeline to sale | Buyer’s concern |
|---|---|---|---|
| Washington DC | Non-judicial deed of trust, with mandatory mediation for owner-occupied homes | 4–9 months | Mediation delays, tenant protections after sale |
| Maryland | Power of sale filed in circuit court, then court ratification | 6–12 months | Ratification step, owner-occupant mediation |
| Virginia | Non-judicial trustee sale | 2–4 months | Fast, but title and notice errors can void sales |
DC’s owner-occupant mediation program is run by the Department of Insurance, Securities and Banking. A note buyer on an owner-occupied DC file assumes that step will happen. On tenant-occupied DC collateral, the bigger issue is what happens after the sale. DC’s Rental Housing Act limits the reasons a landlord can evict. A foreclosure purchaser generally steps into the landlord’s shoes and inherits the tenancy. Buyers price that as months of carry and legal fees. Process detail is in the DMV foreclosure investor guide and the DC foreclosure investor guide.
This is educational only. Talk to a DC, Maryland, or Virginia attorney before you accelerate, assign, or foreclose.
2026 DMV note buyer yield bands (illustrative)
Buyers quote a price as a yield on the remaining payments, then adjust for documents, loan-to-value, and collateral. These are composite planning bands, not offers.
| File quality | Indicative yield | What it usually means |
|---|---|---|
| First lien, 12+ months perfect pay, owner-occupied DC or NoVA home, LTV ≤ 65% | 9.5%–11.5% | Tightest discount |
| First lien, performing, tenant-occupied DC rowhouse, LTV 70%–80% | 11%–13.5% | Tenant law priced in |
| First lien, Prince George’s single-family, performing | 10.5%–13% | Collateral value and resale depth |
| Under 6 months seasoning, thin payer credit | 13%–16%+ | Or a pass |
| Second lien | 16%–22%+ | Junior recovery is weak |
| Non-performing | Priced as a property play | Often better to settle or enforce |
Face value is the remaining principal, not the original loan. A $300,000 balance at 7% with 25 years left will not produce a $300,000 check.
Worked example — Brookland rowhouse note vs. new acquisition loan
Composite. You sold a renovated Brookland rowhouse two years ago and carried $340,000 at 7.0%, 30-year amortization. The remaining balance is $332,600. The payer is owner-occupant and has never been late. A recent broker opinion puts value at $640,000, so LTV is about 52%.
You need $150,000 to buy a Trinidad rowhouse to flip. Two paths:
| Path | Cash raised | What you keep |
|---|---|---|
| Sell the full note at a 10% yield | ~$255,000–$265,000 | No future payments |
| Sell the next 7 years of payments (partial) | ~$128,000–$137,000 | The remaining tail after year 7 |
| Keep the note; finance the flip with hard money at 8.99%–13.5% | Loan proceeds sized to the Trinidad deal | ~$2,260/month from the Brookland note |
A full sale converts a 7% performing asset into cash at roughly a 20%–23% discount to face. If the Trinidad flip can be financed at up to 100% LTC on a qualified file, the note may be worth more to you in the drawer. Jaken Finance Group can price the Trinidad loan. We will not price the note.
Worked example — Hyattsville note vs. DSCR cash-out on a property you still own
Composite, two separate fact patterns.
Pattern A — you sold the house. You sold a Hyattsville single-family home to an investor and carried $260,000 at 8%. The remaining balance is $255,400, with 11 months of history. The home is rented to a tenant. The monthly payment is about $1,908. A note buyer would likely bid a 12%–14% yield, or about $160,000–$185,000.
Pattern B — you still own a different house. You own a renovated Hyattsville rental free and clear, worth $430,000, renting for $3,100.
| Path | Proceeds | Ongoing |
|---|---|---|
| Pattern A — sell the note at 13% | ~$172,000 lump sum | $0 |
| Pattern B — DSCR cash-out at 75% LTV | $322,500 at 5.75%–10.5% | Keep the rent, pay the new mortgage |
You cannot refinance a house you already sold. The table exists to stop owners from mixing note-sale math with refinance math. If the deed is in your name, start at DSCR loans Prince George’s County or cash-out refinance Washington DC.
Default recovery sketch — tenant-occupied DC rowhouse
This is how a note buyer models the downside on a $410,000 balance secured by a rented Petworth rowhouse.
| Line | Amount |
|---|---|
| Remaining balance | $410,000 |
| Legal fees through sale | $8,000–$15,000 |
| Taxes and insurance during 8-month clock | $6,500–$10,000 |
| Post-sale carry with inherited tenant | $12,000–$30,000 |
| Make-ready after possession | $25,000–$60,000 |
| Resale costs including DC transfer tax | $45,000–$60,000 |
| Total exposure | ~$506,000–$585,000 |
If the rowhouse resells for $650,000, the note is well secured. At $560,000, the “safe 7% note” becomes a break-even real estate position. That is why buyers haircut rented DC collateral.
Documents to assemble before you market a note
Jaken Finance Group does not review note packages. Licensed note buyers typically ask for:
- Original promissory note (a lost note means a legal fix and a worse bid)
- Recorded deed of trust and every assignment
- 12+ months of payment history from bank records
- Title report showing lien position
- Hazard insurance naming you as mortgagee
- Current tax record from OTR, SDAT, or the county
- Photos and a broker opinion of value or appraisal
- For rentals: lease, rent ledger, and DC Basic Business License status
- Any disclosures you gave the payer at origination
Seller financing to an owner-occupant can raise federal lending rules and licensing questions. The Consumer Financial Protection Bureau publishes the federal rules. Buyers will ask whether your origination complied.
Full sale, partial sale, or keep the note
| Structure | When DMV holders use it |
|---|---|
| Full sale | You want out of servicing and default risk |
| Partial sale | You need a lump sum now but want the long tail |
| Keep and borrow elsewhere | The note is strong and your next deal can carry its own financing |
Partial sales look better priced per dollar because the buyer’s risk window is shorter. They are still discounts. Get at least two bids.
Where Jaken Finance Group fits
| You want | Tool | Who |
|---|---|---|
| Cash for a note on a property you sold | Sell or partial-sell the note | Note buyers — not Jaken Finance Group |
| Cash out of a DC-area rental you own | DSCR cash-out at 5.75%–10.5% | Jaken Finance Group |
| Buy the next rowhouse fast | Hard money at 8.99%–13.5% interest-only | Jaken Finance Group |
| Buy at a DC trustee or tax sale | Cash at sale, then a rehab loan once title is insurable | Jaken Finance Group after deed |
If someone tells you Jaken Finance Group will buy your note, they are mistaken. We may finance your next purchase — that is a loan you repay to us.
Local risk notes
Tenant law in DC. Rented DC collateral is worth less to a note buyer than the same house vacant. Read the DC landlord-tenant eviction guide.
Condo collateral. A DC condo association lien can take priority over part of a first mortgage. Buyers check association dues status on every condo note.
Tax reassessment. A renovated house on a stale assessment will see a higher bill. See the DC property tax guide.
Interest-rate limits. DC, Maryland, and Virginia each have their own usury and licensing rules. Review them in the DC, Maryland, and Virginia private lending law guide.
Related guides
- Residential mortgage note buyers investor guide
- DMV foreclosure investor guide
- DSCR loans Washington DC
- Hard money lenders Washington DC
- Greater DC investor market report 2026
Pre-qualify for a loan · Submit a deal · (833) 264-7776
This page is educational. Jaken Finance Group does not purchase mortgage notes. Note pricing requires quotes from parties that buy notes. Loan rates (hard money 8.99%–13.5% interest-only; DSCR 5.75%–10.5%) apply to origination for qualified borrowers and are subject to change. Composite examples are illustrations, not offers.