Note buyers
Colonial Funding Group
Colonial Funding Group buys residential real estate secured notes and mortgages as a principal buyer rather than a broker. It works with individual note holders selling a single private mortgage, small pool sellers, and institutional fund managers rebalancing a portfolio.
The process runs in four steps from submission to funding. A seller submits the note or the tape, the firm prices it using its own valuation models, terms are agreed, and the file closes. The firm charges no evaluation, commitment, or application fees, and says it does not re-trade an agreed price. Most individual note sales close within 15 to 30 business days; institutional pool timelines depend on the size of the tape and the quality of the data.
The company says it has provided an exit for note holders for over 40 years and that its team's combined experience exceeds a century. Counterparties named on the site include individual note holders, institutional investors, qualified brokers and note flippers, and other trusted counterparties. Business hours are 9:00 a.m. to 5:00 p.m. Central.
Quotes are free and no pricing grid is published, so the discount applied to any note depends on the file. Ask how the price is arrived at, and what happens to servicing after closing, before you send a tape.
Best for
Holders of seller-financed or non-performing residential notes, from a single note to a whole pool, who want a direct principal buyer and a firm price. Not for sellers who want to keep the income stream.
What they do
- Individual mortgage note purchases
- Small note pool purchases
- Institutional note pool divestitures
- Performing note acquisition
- Non-performing note acquisition
- Note valuation and purchase quotes
Details
| Attribute | Value |
|---|---|
| How they charge | Charges no evaluation, commitment, or application fees; quotes are free. |
What stands out
- Says it has provided an exit for residential mortgage note holders for over 40 years.
- Charges no evaluation, commitment, or application fees and quotes a firm buy-out price at no cost to the seller.
- Most individual note sales close within 15 to 30 business days, per the firm's own FAQ.
- Buys as a principal rather than a broker, and handles institutional pools as well as single notes.
Common questions
- Does Colonial Funding Group charge fees to evaluate a note or pool?
- No. The firm buys as a direct principal rather than a broker, and states it charges no evaluation fees, commitment fees, or application fees. Its stated goal is to provide a firm buy-out price at no cost to the seller.
- How long does a note sale take to close?
- Most individual note sales close within 15 to 30 business days. For institutional pools the timeline depends on the size of the tape and the quality of the data, though the firm says its diligence process is faster than a traditional bank-to-bank transfer.
- Why sell a note instead of collecting the monthly payments?
- The firm lists three common reasons: liquidity, where a seller needs a lump sum for a major purchase or investment; risk mitigation, to avoid the risk of a future borrower default; and estate simplification, distributing cash to heirs rather than a long-term debt instrument.