A
Borrower
The person or entity that signed the promise to pay and is responsible for the scheduled payments.
module 01
What a mortgage note is.
A mortgage note is the borrower's written promise to repay a loan. The mortgage or deed of trust connects that promise to real estate collateral, which is why note review always has both a cash-flow side and a property side.
core parties
The note has more than one moving part.
A clean first read names the parties, the collateral, and who is responsible for collecting and reporting payments.
B
Note Owner
The lender or investor who owns the right to receive payments, subject to the documents and applicable law.
C
Collateral
The real estate that secures the promise. Property value, title, taxes, and senior liens all matter.
typical origination flow
From property sale to note ownership.
In the simplified playbook example, a buyer brings a down payment, a lender finances the balance, and the resulting note can later be sold or assigned to another note owner.
The investor is not buying a rental house in that scenario. The investor is buying the right to receive payments under the note, with real estate serving as collateral.
Buyer
Signs the note and makes scheduled payments.
Lender
Funds the purchase and records the collateral instrument.
Note Owner
Receives payments after purchase, assignment, or transfer.
Servicer
Collects, records, and reports payment activity.
first review
Questions to answer before the math.
Document Questions
Is there a note, mortgage or deed of trust, assignment history, payment ledger, and servicing record?
Collateral Questions
What property secures the note, what is the estimated value, and are there taxes, liens, or title issues?