Sell a Land Note Created Years Ago in Texas — Is It Still Valuable?

If you hold a Texas land note that was created years ago — perhaps five, ten, fifteen, or even twenty years in the past — you may wonder whether it still has meaningful value on today's market. The answer, for the vast majority of old Texas land notes, is a definitive yes. An old land note in Texas that is still being paid, still secured by real property, and still enforceable under its original terms is a valuable financial asset regardless of when it was created. In fact, the age of a note can actually work in its favor: a note that has been performing for a decade or more demonstrates a level of borrower reliability that newer notes simply cannot match. An old note with a long history of on-time payments is, in many ways, the gold standard of the secondary note market.

That said, selling an old land note in Texas does come with specific considerations that newer notes do not face. The documentation may be incomplete or disorganized after years of storage. The original terms may reflect a different interest rate environment. The property may have changed significantly since the note was created. The borrower's circumstances may have evolved. And the legal requirements that applied when the note was created may differ from current law. Understanding how these factors affect your old note's value — and what you can do to maximize that value — is the purpose of this comprehensive guide.

Whether your note was created in 2005, 2010, 2015, or any other year, this article will help you understand what makes old Texas land notes valuable, what challenges they may present, and how to navigate the sale process successfully. The age of your note is not a liability — it is a story of sustained performance that experienced buyers like Longhorn Note Buyers know how to evaluate and reward.

Why Old Texas Land Notes Are Still Valuable

Proven Payment History

The most valuable attribute of an old note is its payment history. A note that has been performing for ten or fifteen years has demonstrated something that no new note can claim: decade-long proof that the borrower is willing and able to make payments. This track record is enormously valuable to note buyers because it dramatically reduces the perceived risk of future default. A borrower who has paid faithfully for 120 consecutive months is statistically far less likely to default in month 121 than a borrower who has only paid for 12 months. This reduced risk translates directly into better pricing — the buyer can accept a lower yield (and therefore offer a higher price) because the expected default probability is lower.

The payment history also tells a story beyond simple reliability. If the borrower has made payments through economic recessions, personal financial challenges, and changing life circumstances over many years, their commitment to the property and the note is deeply established. They have had many opportunities to walk away and have chosen to continue paying. This behavioral evidence is more predictive of future performance than any credit score or financial statement, and experienced note buyers weight it heavily in their evaluations.

Established Collateral Value

Texas land values have generally appreciated over the long term, which means that properties securing old notes are often worth significantly more today than when the note was created. A note originated in 2010 on a 20-acre tract that was worth 40,000 dollars at the time may now be secured by a property worth 70,000 or 80,000 dollars. This appreciation improves the loan-to-value ratio — the remaining note balance as a percentage of the property's current value — which is one of the most important factors in note pricing. A note with a 25,000-dollar remaining balance secured by a property now worth 75,000 dollars has a loan-to-value ratio of approximately 33 percent — an extremely strong position that supports premium pricing from note buyers.

Reduced Remaining Balance

Years of payments have reduced the principal balance of your old note, which affects the note's value in several positive ways. A lower balance means a better loan-to-value ratio (as discussed above). It also means the buyer's total investment is smaller, which can make the note accessible to a wider range of buyers. And it means the remaining term is shorter (assuming no balloon extension), which reduces the buyer's exposure period and risk. All of these factors contribute to favorable pricing for old notes with reduced balances. The combination of a long payment history, a low remaining balance, and an improved loan-to-value ratio is the trifecta that experienced note buyers look for, and old notes are the most likely candidates to deliver all three.

Challenges Specific to Selling Old Texas Land Notes

Missing or Incomplete Documentation

The most common challenge with old notes is documentation. Over the years, documents get lost, misfiled, water-damaged, or simply forgotten. The original promissory note may be in a safe deposit box you forgot about, a filing cabinet that was cleaned out years ago, or with an attorney who has since retired. The payment history may have gaps because records were not kept consistently over the entire life of the note. The deed of trust may have been recorded in the county records but you do not have a personal copy. Each missing document creates a challenge that must be addressed before or during the sale process.

The good news is that many documentation gaps can be filled. The deed of trust can be obtained from the county clerk's records. Payment records can sometimes be reconstructed from bank statements, tax returns (which show interest income reported), or borrower records. If the original promissory note is truly lost, Texas law provides procedures for dealing with lost instruments, although this adds complexity and may affect pricing. The key is to begin gathering and organizing your documents as early as possible, so you know what you have and what you are missing before approaching a buyer. Our comprehensive checklist of documents needed to sell a land note in Texas is an essential resource for this process.

Below-Market Interest Rates

Notes created during low-interest-rate periods may carry rates that are below the current market for owner-financed land deals. A note originated at 7 percent in 2012 is below the 9 to 11 percent range typical in 2026. Below-market rates mean the note generates less income per dollar of remaining balance, which requires a larger discount for the buyer to achieve their target yield. While this does not make the note unsellable, it does affect pricing. The impact is partially offset by the note's other positive characteristics — the long payment history, the improved loan-to-value ratio, and the shorter remaining term — but sellers of below-market-rate notes should have realistic expectations about the discount. For a thorough understanding of how interest rates affect note value, our article on owner financing interest rates for Texas land in 2026 provides useful context.

Changes in the Property or Borrower

Over the years since your note was created, the property and the borrower may have changed in ways that affect the note's value. The property may have been improved (which increases collateral value) or neglected (which decreases it). The borrower may have built equity and stability or may have experienced financial setbacks. Access to the property may have improved or deteriorated. Environmental conditions, zoning changes, or development patterns in the area may have altered the property's marketability. All of these changes are factors that a note buyer will consider, and having current information about the property and borrower helps you present the note in the most accurate light.

What Note Buyers Look for in Old Texas Land Notes

Consistency and Reliability

Above all else, note buyers evaluating old notes look for consistency. Consistent, on-time payments over many years are the single most powerful indicator of note quality. A note with ten years of perfect payments and a modest interest rate will often command a better price than a newer note with a higher rate but only one year of payment history. Consistency extends beyond payments — consistent documentation, consistent communication with the borrower, and consistent property maintenance all contribute to the buyer's confidence in the note's quality.

Clean Title and Lien Position

For old notes, confirming that the title is clean and the deed of trust remains in first lien position is particularly important. Over the years, other liens may have been placed on the property — property tax liens, mechanic's liens, judgment liens, or second deeds of trust. A current title search reveals the current state of the title and identifies any issues that need to be addressed. Having a recent title search available when you approach a buyer demonstrates thoroughness and can speed the due diligence process. If any unexpected liens are discovered, addressing them before the sale simplifies the transaction and supports better pricing.

Remaining Term and Balance

Note buyers are interested in the remaining term (how many payments are left) and the remaining balance (how much is still owed). For old notes, the remaining term may be relatively short — perhaps two to five years — which limits the buyer's risk exposure and makes the note more attractive. The remaining balance, reduced by years of payments, determines the buyer's total investment. Old notes with short remaining terms and modest balances are efficient investments for buyers because the capital is returned quickly and the risk window is narrow. These characteristics support competitive pricing that may pleasantly surprise sellers who assumed their old note had diminished in value.

Maximizing the Value of Your Old Texas Land Note

Gather and Organize Your Documents

The single most impactful thing you can do to maximize the value of your old note is to gather and organize every document you have. The original note, the deed of trust, payment records, correspondence with the borrower, tax records, and any modifications or amendments should all be compiled and presented in an organized package. If documents are missing, make every effort to locate or reconstruct them. The more complete and organized your documentation, the more confident the buyer will be in their evaluation, and confident buyers offer better prices.

Get a Current Property Valuation

Providing the buyer with information about the property's current value helps them assess the loan-to-value ratio quickly and accurately. This does not need to be a formal appraisal — a county appraisal district value, recent comparable sales data, or even a well-informed estimate of the property's current market value gives the buyer a starting point for their collateral evaluation. If the property has appreciated significantly since the note was created, highlighting this appreciation — and the resulting strong loan-to-value ratio — can support better pricing.

Confirm the Borrower's Current Status

If you have a good relationship with your borrower, confirming their current status — that they are still occupying or using the property, that they intend to continue making payments, and that they are aware of the remaining balance and term — provides useful context for the buyer. A borrower who is actively engaged with the property and committed to the note is a positive factor that supports the note's value. If you do not have regular contact with the borrower, even confirming that payments continue to arrive on schedule is valuable evidence of ongoing commitment.

Common Questions About Selling Old Notes

Is There a Point Where a Note Is Too Old to Sell?

There is no age at which a Texas land note becomes unsellable. As long as the note is enforceable (meaning the statute of limitations has not expired on enforcement), the borrower is still making payments, and the deed of trust remains a valid lien on the property, the note has value. Notes that are 15, 20, or even 25 years old can be sold to experienced buyers. The key factors are the note's current performance, not its age. An experienced buyer like Longhorn Note Buyers evaluates old notes based on their current characteristics — the remaining balance, the payment pattern, the property value, and the documentation — and provides a fair quote regardless of when the note was originated.

Has My Note's Value Decreased Over Time?

The remaining balance of your note has decreased as payments have been made, which means the total future cash flows available to a buyer are smaller than when the note was new. However, the value per dollar of remaining balance may have actually increased because the note now has a proven payment history, a better loan-to-value ratio, and a shorter remaining term. In many cases, the percentage of the remaining balance that a buyer will pay (the recovery rate) is higher for an old note than for a new note with identical financial terms, because the old note's performance history reduces the buyer's risk. The net result is that while the dollar amount of the sale will be less than what the note was worth when new (because the balance is lower), the deal may actually be more favorable in relative terms.

Ready to Sell Your Note?

If you hold a Texas land note that was created years ago and want to know what it is worth today, Longhorn Note Buyers can provide a fair, informed evaluation within 24 hours. With over $46 million in Texas notes purchased since 2007, Longhorn has evaluated and purchased notes of every age, from newly created to decades old. Their 100 percent close rate on every deal quoted and their BBB A+ rating reflect a commitment to accuracy, fairness, and follow-through that Texas note holders can trust. Founded by Nick McFadin — buying notes since 1983, with over 40 years of experience in the Texas note market — and partnered with Sandy McFadin since 2013, Longhorn Note Buyers is based in San Antonio and works exclusively in Texas. Call (210) 828-3573 or visit longhornnotebuyers.com today for a free, no-obligation quote. Your old note may be worth more than you think — find out today and make the most informed decision about your financial future.

Frequently Asked Questions

Is a note created 15 or 20 years ago still enforceable in Texas?

Yes, as long as the borrower has been making payments and the note has not been abandoned or discharged. The statute of limitations for enforcing a promissory note in Texas is generally six years from the date the cause of action accrues (typically the date of default or acceleration). If the borrower has been making payments continuously, no cause of action has accrued, and the note remains fully enforceable regardless of its age. Each payment reaffirms the borrower's obligation and restarts any limitations considerations. A note that has been performing for 15 or 20 years with no defaults is on solid legal ground.

What if I cannot find the original promissory note?

A missing original note is a common issue with older notes and is not an insurmountable obstacle. Texas law provides procedures for enforcing and transferring lost instruments, typically involving an affidavit attesting to the note's existence, terms, and loss, combined with supporting documentation such as the recorded deed of trust, payment records, and copies of the note if available. Some note buyers will purchase notes without the original document, although the pricing may reflect additional risk. Longhorn Note Buyers has experience handling notes with missing originals and can evaluate your situation based on the documentation that is available. A Texas attorney can also advise on formalizing the lost-note status to facilitate the sale.

Does the interest rate on my old note matter to buyers?

Yes, the interest rate affects pricing because it determines the income the note generates relative to the remaining balance. Old notes with rates below current market levels (such as notes at 6 or 7 percent when the current market is 9 to 11 percent) will be priced at steeper discounts than notes with higher rates. However, the interest rate is only one factor among many — the payment history, loan-to-value ratio, remaining term, and documentation quality all contribute to the overall evaluation. An old note with a below-market rate but an exceptional payment history and low loan-to-value ratio can still command competitive pricing because the reduced risk partially offsets the lower rate.

Will the buyer verify the payment history on my old note?

Yes, the buyer will want to see documentation of the payment history. For professionally serviced notes, the servicer can provide a complete payment ledger. For self-managed notes, the buyer will review whatever records you can provide — bank statements, deposit records, spreadsheets, handwritten logs, or tax returns showing interest income. The more complete and verifiable the payment history, the more confident the buyer will be in the note's performing status. If there are gaps in the records, being honest about them and providing whatever supporting documentation exists is better than presenting an incomplete or uncertain history as complete.

How do I get started selling my old Texas land note?

Start by gathering your documents — the promissory note (or evidence of its terms if the original is lost), the deed of trust, and whatever payment records you have. Then contact an experienced Texas note buyer like Longhorn Note Buyers to get a free, no-obligation quote. You can call (210) 828-3573 or visit longhornnotebuyers.com to start the process. Provide the buyer with your note details, and within 24 hours, you will have a concrete number that tells you what your old note is worth in today's market. From there, you can make an informed decision about whether to sell now, hold, or explore other options. The process is straightforward, and the first step — getting a quote — costs you nothing and commits you to nothing. It simply gives you the information you need.