Sell Your Note After Relocating Out of Texas

You sold a property in Texas with owner financing, created a promissory note, and collected payments for a while. Then life happened. A job transfer, a family situation, a retirement move, or simply a desire for a fresh start took you to another state — or another country. Now you are hundreds or thousands of miles from the property securing your note, managing payments from a distance, and dealing with the complications that come from being an absentee note holder in a state where you no longer live, work, or have daily connections.

This situation is more common than most people realize. Texas is the number one state people move away from in raw numbers, even as it is also the number one destination for inbound moves. Thousands of former Texans carry promissory notes on properties they left behind, and many discover that managing those notes from a distance is harder, riskier, and more stressful than they expected.

If you have relocated out of Texas and still hold a promissory note on Texas property, this guide explains why selling that note is often the smartest financial move, how the process works when you are out of state, and what you need to know to get the best value from the transaction.

Why Distance Makes Note Management Harder

Holding a note on Texas property while living elsewhere creates a set of challenges that compound over time. What felt manageable when you lived nearby becomes increasingly difficult as months and years pass.

You Cannot Monitor the Property

The property securing your note is your collateral — the asset that protects your investment if the borrower stops paying. When you lived in Texas, you could drive by the property occasionally to confirm it was being maintained, occupied, and not deteriorating. From another state, you have no visibility into the property's condition. Is the borrower maintaining it? Has there been storm damage that the borrower has not repaired? Are there code violations or tax liens accumulating? Has the borrower made unauthorized modifications that reduce the property's value? You simply do not know, and finding out requires effort, cost, and reliance on third parties.

Insurance Verification Becomes Difficult

Your deed of trust almost certainly requires the borrower to maintain hazard insurance on the property with you named as an additional insured or loss payee. Verifying that this insurance remains in force, that coverage amounts are adequate, and that the policy has not lapsed requires ongoing diligence. From a distance, it is easy for this to slip through the cracks — and if the borrower lets the insurance lapse and the property suffers damage, your collateral value can evaporate overnight.

Tax Payment Monitoring Is Inconvenient

Property taxes in Texas are among the highest in the country, and a borrower who falls behind on taxes creates a serious problem for note holders. Tax liens are senior to your deed of trust, meaning the taxing authority's claim comes before yours. Monitoring whether the borrower is current on property taxes from another state requires checking with the county tax assessor — a task that is straightforward when you live there but becomes one more thing to track and manage from a distance.

Default Enforcement Is Complicated From Afar

If the borrower defaults on the note — stops paying, violates the terms, or lets the property deteriorate — your remedies are governed by Texas law and must be pursued in Texas courts or through Texas foreclosure procedures. Managing a foreclosure or workout from another state means hiring a Texas attorney you may never meet in person, coordinating across time zones, and making decisions about a property and a market you are no longer familiar with. The cost, complexity, and stress of remote default enforcement often exceeds what the note holder anticipated.

You Lose Touch With the Local Market

Property values in Texas are dynamic and vary significantly by region, city, and neighborhood. When you lived there, you had an intuitive sense of local market conditions — whether values were rising or falling, whether the neighborhood was improving or declining, whether new development was coming or leaving. From another state, you lose that local knowledge. Your ability to assess whether your collateral is appreciating or depreciating — and whether your note is becoming more or less secure over time — diminishes steadily.

The Financial Case for Selling After Relocation

Beyond the practical management challenges, there are strong financial reasons to sell a Texas note after you have relocated.

Eliminate Concentration Risk

A promissory note secured by a single property in a single state represents concentrated risk. If local property values decline, if the borrower defaults, or if something happens to the property — flood, fire, contamination — your investment suffers disproportionately. Selling the note and diversifying the proceeds into broader investments reduces this concentration and creates a more resilient financial position.

Redeploy Capital Locally

Your financial life has moved to a new location. You may want to buy property, start a business, or make investments in your new area. Capital tied up in a Texas note cannot be deployed in your new market. Selling the note frees that capital to work where you actually live, invest, and build your financial future.

Simplify Your Tax Situation

Holding a note on Texas property while living in another state can create tax complexity. While Texas has no state income tax, your new state of residence may tax the interest income from the note. Selling the note simplifies your ongoing tax situation — you recognize the gain in the year of sale and then have no further Texas-connected income to track, report, or potentially pay taxes on in your new state. For a full discussion of tax considerations, see this overview of tax implications of selling a note in Texas.

Avoid Future Legal Complexity

If the borrower defaults or a dispute arises, you will be dealing with Texas courts and Texas law while living elsewhere. This means hiring a Texas attorney, potentially traveling to Texas for proceedings, and navigating a legal system you may not be familiar with. Selling the note eliminates this risk entirely — the buyer assumes all future obligations and risks associated with the note and the borrower.

How the Out-of-State Selling Process Works

Selling a note when you no longer live in Texas is straightforward. The process is essentially the same as selling from within the state, with a few logistical adjustments.

Initial Contact and Offer

Contact a Texas-based note buyer and provide the basic details of your note: the remaining balance, interest rate, monthly payment, number of payments remaining, property address, and payment history. This can be done entirely by phone, email, or through an online submission form. Your physical location does not matter — a buyer like Longhorn Note Buyers works with sellers across the country and provides offers within 24 hours regardless of where the seller lives.

Document Submission

You will need to provide the original promissory note, deed of trust, payment history, title insurance policy, and proof of hazard insurance. If you have these documents in your files — even at your new address — you can scan and email them or ship them via overnight courier. If you cannot locate the original documents, the buyer can often work with the county records office to obtain copies of the deed of trust, and your title company may have copies of other documents on file. For a complete checklist, see this guide on documents needed to sell a note in Texas.

Due Diligence

The buyer performs due diligence on the note and the property — title search, property valuation, borrower review. None of this requires your physical presence in Texas. The buyer handles the title search through a Texas title company, orders the property valuation through local professionals, and reviews the borrower's payment history from the records you provide.

Closing

Closing a note sale can be done entirely by mail or electronically. You sign the assignment of the note and deed of trust, which transfers ownership to the buyer. These documents are typically sent via overnight courier for signature and return. Some title companies also support electronic notarization and signing, which can make the process even faster. The buyer records the assignment in the Texas county where the property is located — again, no physical presence required.

Receiving Funds

Funds are typically wired to your bank account on the day of closing or within one to two business days after. The wire goes to whatever bank account you designate, regardless of what state it is in. You receive the funds and the transaction is complete.

Special Considerations for International Relocations

If you have relocated outside the United States, the same process applies with a few additional considerations.

FIRPTA Withholding

The Foreign Investment in Real Property Tax Act requires buyers to withhold 15 percent of the gross sales price when purchasing from a foreign person. While FIRPTA technically applies to real property interests, the sale of a note secured by real property may or may not trigger FIRPTA withholding depending on how the transaction is structured. Consult with a tax advisor who specializes in international taxation before proceeding.

Notarization Abroad

Closing documents must be notarized, and notarization procedures vary by country. In many countries, a U.S. embassy or consulate can provide notary services. Some countries have their own notarization procedures that may be recognized under Texas law with an apostille. Coordinate with the buyer and the title company early in the process to determine the best approach for document execution from your specific location.

Wire Transfer Considerations

International wire transfers take longer — typically two to five business days — and may involve intermediary banks that charge fees. Confirm the wire routing information with your bank before closing, and factor in the additional transfer time when planning your timeline. Currency conversion, if applicable, may also affect the net amount received.

What Makes a Relocated Seller's Note Attractive to Buyers

Note buyers evaluate every note on its investment merits. Understanding what makes your note attractive helps you set realistic expectations and present the note in the best light.

Payment History Is King

The single most important factor in note valuation is the borrower's payment history. A note with 24 or more months of on-time payments demonstrates that the borrower is reliable — regardless of where the note holder lives. If your borrower has been paying consistently, your note is attractive and will command strong pricing.

Property Type and Location Matter

Properties in growing Texas metros — Austin, Dallas-Fort Worth, Houston, San Antonio — are more liquid and more valuable as collateral than rural or remote properties. The type of property matters too: residential homes are the most liquid, followed by commercial properties, then land. Buyers pay higher percentages for notes secured by properties that are easier to value and easier to sell if necessary.

LTV Ratio

The loan-to-value ratio — the remaining note balance divided by the current property value — is a key risk measure for buyers. A lower LTV means more equity cushion protecting the buyer's investment. If property values in the area have increased since you created the note, the LTV has improved, making the note more attractive. For a comprehensive look at valuation factors, see this guide on what determines note value in Texas.

Documentation Quality

Well-documented notes close faster and command better pricing. Complete records — the original note, recorded deed of trust, clean title, current insurance, and detailed payment history — signal a professional, organized seller and reduce the buyer's due diligence costs and timeline. Even if you created the note informally, having the key documents in order makes a significant difference in the buyer's offer.

Common Mistakes Relocated Sellers Make

Relocated note holders sometimes make errors that reduce the value of their notes or complicate the sale process. Avoid these common pitfalls.

Letting Documentation Lapse

After moving, some note holders stop verifying that the borrower maintains insurance, stays current on property taxes, and complies with the terms of the deed of trust. These lapses can create problems that reduce the note's value when it comes time to sell. Even if you plan to sell soon, maintaining these monitoring activities protects your investment until the sale closes.

Losing Track of Original Documents

Moves are chaotic, and important documents sometimes get lost, misfiled, or left behind. The original promissory note is the most critical document — without it, proving ownership and transferring the note becomes more complex and expensive. If you have moved recently, locate your original note and deed of trust now, even if you do not plan to sell immediately.

Waiting Too Long

The longer you hold a note from a distance, the more the management challenges compound and the greater the risk that something goes wrong — a borrower default, a property problem, an insurance lapse, a tax delinquency. Selling sooner rather than later, while the note is performing and the property is in good condition, typically produces the best outcome.

Using a Local Broker Instead of a Direct Texas Buyer

Some relocated sellers try to sell their Texas note through a broker in their new state. This rarely works well because local brokers outside Texas may not have connections to Texas note buyers, may not understand Texas-specific legal requirements, and add a layer of cost and time. Working directly with a Texas-based note buyer like Longhorn Note Buyers eliminates these inefficiencies.

Why Longhorn Note Buyers for Out-of-State Sellers

Longhorn Note Buyers has purchased notes from sellers located across the country and understands the logistics of out-of-state transactions. Their process is designed to work seamlessly regardless of where you live — initial evaluation by phone or email, document submission electronically, due diligence handled entirely in Texas, closing by mail or electronic signature, and funds wired to your bank account anywhere in the world.

With over $47 million in Texas notes purchased, an A+ BBB rating, and a 100 percent close rate, Longhorn combines Texas market expertise with the flexibility and efficiency that out-of-state sellers need. They know Texas property values, Texas legal requirements, and the Texas note market — even if you no longer do.

Ready to Sell Your Note?

If you have relocated out of Texas and still hold a promissory note on Texas property, now is the time to simplify your financial life. Contact Longhorn Note Buyers today at (210) 828-3573 or visit longhornnotebuyers.com to get your free cash offer within 24 hours. The process works entirely by phone, email, and mail — no trip to Texas required. Get the cash, eliminate the management headache, and put your capital to work where you actually live.

Frequently Asked Questions

Do I need to be in Texas to sell my note?

No. The entire note sale process can be handled remotely. You submit your documents electronically, the buyer performs due diligence in Texas, closing documents are signed and returned by mail or electronic signature, and funds are wired to your bank account regardless of location. Sellers from every state and several countries have completed note sales without setting foot in Texas.

Will my note be worth less because I live out of state?

Your location has no impact on note valuation. Buyers evaluate the note based on the remaining balance, interest rate, payment history, property value, LTV ratio, and borrower quality — not where the seller lives. A well-performing note with strong collateral commands the same price whether the seller lives in San Antonio or Seattle.

What if I cannot find the original promissory note?

If the original note is lost, the buyer can still proceed, but the process requires additional steps. You may need to execute a lost note affidavit, which is a sworn statement that the note has been lost and not transferred to anyone else. The title company and buyer will work with you to establish your ownership and complete the transaction. It adds some time and cost, but it does not prevent the sale.

Can I sell my note if the borrower is behind on payments?

Yes. Notes with late or missed payments can be sold, though they are valued at a discount that reflects the additional risk. If the borrower is behind, selling the note may be particularly attractive because it transfers the collection and potential foreclosure burden to the buyer — a significant relief when you are managing the situation from another state.

How long does the process take if I am out of state?

The timeline is essentially the same as for in-state sellers: two to four weeks from initial contact to funding. The only potential addition is shipping time for physical documents, which overnight courier services handle in one to two business days. Electronic document submission and e-signatures can reduce even this minor delay.