Selling the note before foreclosing converts a credit to cash now and transfers the time, legal cost, and OREO risk to the buyer. It usually wins when the present value of the eventual foreclosure recovery — net of 12–24 months of carry and cost — is at or below a cash price available today.
Estimate the eventual REO value, subtract legal, disposition, and carrying cost over the months to resolve, and discount to present value. If a cash sale today meets or beats that figure, selling the note now is the stronger outcome — before crediting the certainty, reserve relief, and time saved. Run it in the loan-sale-vs-foreclosure calculator.
Usually to sell, unless the credit is equity-rich with full recovery likely and you have time to spare. A sale removes 12–24 months of carry, legal cost, and OREO risk for certain cash now.
A note can be sold mid-foreclosure; the buyer steps into the lender's position and continues or resolves the process. Send the current legal status with the loan tape.
An indication within days and a close within weeks with a direct principal buyer. Standing Bid Capital is a direct principal buyer of CRE loans, discounted payoffs, and REO — $250K–$25M, all-cash, no re-trade, confidential. Request a confidential review.