Lost Your Original Note? How to Sell With a Lost Note Affidavit in Texas

To sell a promissory note in Texas, you submit your note details to a direct buyer, receive a cash offer (typically within 24 hours), complete a due diligence process, and close in as little as two to four weeks with funds wired directly to your account. There are no broker fees when you sell directly, and the borrower's loan terms remain completely unchanged throughout the transaction. Longhorn Note Buyers, based in San Antonio, has purchased over $47 million in Texas real estate notes since 2007 and maintains a 100% close rate on accepted offers, offers free, no-obligation quotes within 24 hours — call (210) 828-3573 or visit longhornnotebuyers.com.

This guide walks you through the full process of selling a promissory note in Texas in 2026, from understanding what your note is worth to receiving your funds at closing.

What to Do When You Cannot Find the Original Promissory Note

Selling a promissory note backed by Texas real estate typically requires producing the original signed document. The original promissory note is the physical evidence of the debt, and possessing it is what gives the note holder the legal right to enforce the obligation and collect payments. But life happens. Documents get misplaced during a move, lost in a filing mishap, damaged in a flood or fire, or simply forgotten in a drawer that was cleaned out years ago. If you want to sell your Texas note and cannot find the original, you are not out of options. A legal instrument called a Lost Note Affidavit can bridge the gap and allow the sale to proceed.

Longhorn Note Buyers has been purchasing promissory notes in Texas since 1983. Over more than 42 years and $47 million in note purchases, founder Nick McFadin and co-founder Sandy McFadin have encountered virtually every documentation scenario imaginable, including notes where the original document was lost, destroyed, or otherwise unavailable. As a direct buyer with an A+ BBB rating and a 100 percent close rate on quoted offers, we have the experience and the process to work with note sellers who do not have the original document in hand. This guide explains what a Lost Note Affidavit is, how it works under Texas law, and how Longhorn Note Buyers can help you sell your note even without the original.

Why the Original Promissory Note Matters

The Legal Significance of the Original Document

Under Texas law and the Uniform Commercial Code, a promissory note is a negotiable instrument. This means it is a written promise to pay a specific sum of money, and the physical document itself has legal significance. The person or entity in possession of the original note, known as the holder, has the right to enforce it, which includes the right to collect payments, transfer the note to another party, or pursue legal remedies if the borrower defaults. When you sell a note, you transfer not just the right to receive payments but also physical possession of the original document, along with a proper endorsement or allonge.

The importance of the original document stems from a practical concern: preventing duplicate enforcement. If multiple copies of a note existed and each copy could be independently enforced, a borrower could be forced to pay the same debt more than once. By requiring possession of the original as a condition of enforcement, the law ensures that only one party at a time has the right to collect on the debt. This is why note buyers, including Longhorn Note Buyers, prefer to obtain the original document as part of any purchase. It provides the cleanest and most secure transfer of rights.

Common Reasons the Original Gets Lost

Original promissory notes are lost for many reasons, and none of them need to be dramatic or unusual. Many Texas note holders created their owner-financed notes years or even decades ago, and the document may have changed storage locations multiple times since then. Some note holders pass the note to an attorney or title company during the origination process and never receive the original back. Others experience document loss through home moves, office changes, natural disasters, or simple organizational oversight. In some cases, the note holder has passed away and the heirs who inherited the note cannot locate the original among the estate documents.

The age of the note is often a factor. A note that was created 15 or 20 years ago may have been stored in a filing cabinet that no longer exists, a home office that was reorganized, or a safe deposit box that was closed. The longer a note has been in existence, the more opportunities there have been for the original document to be misplaced. This is especially true for notes that were created informally, without the involvement of an attorney or title company, where the original may have been a single copy that was not stored with the same care as a formally originated loan document.

What Is a Lost Note Affidavit

Definition and Purpose

A Lost Note Affidavit is a sworn legal document in which the note holder states under oath that the original promissory note has been lost, destroyed, or is otherwise unavailable, and sets forth the terms and conditions of the note to the best of the affiant's knowledge and recollection. The affidavit serves as a substitute for the original document, establishing the note holder's right to enforce the note and to transfer that right to a buyer. The affidavit does not create a new note or a new obligation. It simply provides legal evidence that the original note existed, that it has been lost through no fault of the borrower, and that the person executing the affidavit is the rightful holder of the note.

The Lost Note Affidavit is recognized under both Texas law and the Uniform Commercial Code as a mechanism for dealing with lost negotiable instruments. Section 3.309 of the UCC, as adopted in Texas, provides that a person not in possession of an instrument who was entitled to enforce it when loss of possession occurred may enforce the instrument by proving the terms of the instrument, the person's right to enforce it, and the reason it cannot be produced. The Lost Note Affidavit provides this proof in a format that courts and note buyers can rely upon.

What the Affidavit Contains

A properly prepared Lost Note Affidavit includes several key elements. First, it identifies the affiant, the person swearing to the facts, including their relationship to the note and how they acquired it. Second, it describes the promissory note in detail, including the original principal amount, the interest rate, the payment terms, the names of the maker (borrower) and payee (original note holder), the date of the note, and any other material terms. Third, it states the circumstances under which the original was lost, to the extent they are known. Fourth, it includes a statement that the affiant has made a diligent search for the original and has been unable to locate it. Fifth, it may include an indemnification provision in which the affiant agrees to indemnify any party who suffers loss as a result of the original note later surfacing.

The affidavit must be signed under oath before a notary public, which gives it legal weight and makes the statements contained in it subject to penalties for perjury if they are false. Some Lost Note Affidavits also include a copy of the note, if one exists, as an exhibit. While a photocopy is not the same as the original, it can corroborate the affiant's description of the note terms and provide additional comfort to a note buyer or court that the affidavit accurately reflects the content of the lost document.

Legal Requirements for a Lost Note Affidavit in Texas

Uniform Commercial Code Provisions

Texas has adopted the Uniform Commercial Code, and UCC Section 3.309 provides the legal framework for enforcing a lost, destroyed, or stolen instrument. Under this section, a person seeking to enforce a lost note must prove the terms of the instrument and the person's right to enforce it. The person must also prove that they were in possession of the instrument and entitled to enforce it at the time of loss, or that they have acquired ownership from a person who was entitled to enforce it. The court may require the person claiming the right to enforce the lost instrument to provide adequate protection, such as a bond or other security, against the possibility that someone else might later present the original note and claim enforcement rights.

The UCC provisions are designed to balance the rights of the note holder who has lost the document against the borrower's protection against double liability. The borrower should not have to pay the same debt twice, and the requirement for adequate protection helps ensure that the borrower is covered if the original note surfaces in the hands of someone who claims the right to enforce it. In practice, when a Lost Note Affidavit is supported by corroborating evidence such as a recorded deed of trust, a payment history, and a copy of the note, the risk of a conflicting claim is very low.

Notarization and Execution Requirements

In Texas, a Lost Note Affidavit must be sworn to and signed before a notary public. The notary verifies the identity of the affiant and witnesses the signature, which gives the document the status of a sworn statement. This is a critical requirement because it subjects the affiant to legal consequences if the statements in the affidavit are false. The notarization transforms the affidavit from an informal statement into a legal document that can be relied upon by courts, note buyers, and other parties.

Some note buyers and title companies may have specific requirements for the format or content of the Lost Note Affidavit beyond what the law requires. For example, they may require specific language regarding indemnification, or they may require that the affidavit be accompanied by additional documentation such as copies of the note, the deed of trust, or evidence of the chain of title. Longhorn Note Buyers works with each seller individually to determine what documentation is needed and to help prepare the affidavit in a form that satisfies all requirements. Our familiarity with the process means we can guide you through it efficiently and help you avoid common pitfalls.

How a Lost Original Affects the Value of Your Note

Impact on Pricing

The absence of the original promissory note does affect how note buyers evaluate a transaction, but it does not necessarily reduce the value of your note significantly. The impact depends on several factors, including the strength of the corroborating documentation, the seasoning of the note, the payment history, and the overall quality of the transaction. A well-seasoned note with a strong payment history, a recorded deed of trust, and a thorough Lost Note Affidavit may be priced very close to what it would be worth with the original document in hand.

However, the absence of the original does create some additional risk for the buyer, and that risk may be reflected in the offer. The primary risk is the theoretical possibility that the original note could surface in the hands of a third party who claims enforcement rights. While this scenario is extremely rare, especially when the note was created in a private transaction between known parties, it is a risk that a prudent buyer must consider. The strength of the Lost Note Affidavit, the supporting documentation, and the buyer's experience with these situations all influence how much, if any, discount applies. At Longhorn Note Buyers, our 42 years of experience mean we can assess these situations accurately and make fair offers that reflect the actual risk rather than applying an arbitrary discount. Understanding how note buyers calculate offers can help you appreciate the factors that go into pricing a note without an original.

Factors That Mitigate the Risk

Several factors can reduce or eliminate the pricing impact of a lost original. The most important is a recorded deed of trust. When the deed of trust is properly recorded with the county clerk, it provides public notice of the lien on the property and creates an independent record of the transaction that does not depend on the physical note. A recorded deed of trust corroborates the existence and terms of the note and significantly reduces the risk associated with a lost original.

A strong payment history is another mitigating factor. If the borrower has been making consistent payments over a period of years, those payments, documented through bank records, servicer reports, or other evidence, confirm that the note is a valid, enforceable obligation. The longer the payment history and the more consistent the payments, the stronger the evidence that the note is legitimate and that the terms described in the Lost Note Affidavit are accurate. Professional servicing records are particularly valuable in this context because they provide independent, third-party verification of the payment history.

Having a copy of the note, even a photocopy or digital scan, also helps. While a copy is not a legal substitute for the original, it provides evidence of the note's terms that supports the statements in the Lost Note Affidavit. Many note holders have copies of their notes in their files, even when the original has been lost. If you have a copy, providing it to the buyer along with the affidavit strengthens the overall documentation package and can result in a better offer. The documents typically needed for a note sale include both originals and copies, and having what you can provides helps the process move forward.

The Process of Selling a Note With a Lost Note Affidavit

Step One: Gather Available Documentation

Before contacting a note buyer, gather whatever documentation you have related to the note. This includes any copies of the promissory note, the deed of trust, the closing documents from the original transaction, bank statements showing payment deposits, correspondence with the borrower, tax records, and any other documents that relate to the note. Even if you do not have the original note, having a copy, a recorded deed of trust, and evidence of the payment history gives a buyer like Longhorn Note Buyers the information needed to evaluate your note and make a fair offer.

If you inherited the note from a deceased family member, check the estate files, the decedent's attorney's records, and any safe deposit boxes or secure storage that the decedent may have used. The original note may turn up during a thorough search, but even if it does not, the search effort itself becomes part of the Lost Note Affidavit's statement that a diligent search was conducted. Document your search efforts, including where you looked and when, as this information will support the affidavit.

Step Two: Contact Longhorn Note Buyers

Reach out to us at (210) 828-3573 or email sandy@longhornnotebuyers.com. Let us know that you are interested in selling your note and that the original document is not available. We will ask you about the terms of the note, the payment history, the collateral property, and what documentation you do have. Based on this information, we will evaluate your note and provide a cash offer within 24 hours. Our offer takes into account the absence of the original and any additional steps that will be needed, but our 42 years of experience mean we can often work with less-than-perfect documentation and still close the deal at a fair price.

Step Three: Prepare the Lost Note Affidavit

If you accept our offer, the next step is preparing the Lost Note Affidavit. Longhorn Note Buyers can guide you through this process, including advising on the content and format of the affidavit and connecting you with a notary or attorney if needed. The affidavit will include your identification, a detailed description of the note terms, the circumstances of the loss, a statement that you have conducted a diligent search, and an indemnification provision. Once the affidavit is prepared, you will sign it before a notary public, and it becomes part of the closing documentation.

The cost of preparing a Lost Note Affidavit is generally modest. If you prepare it yourself using guidance from your note buyer, the primary cost is the notary fee, which in Texas is typically a nominal amount. If you have an attorney prepare the affidavit, the attorney's fees will vary but are generally reasonable for a document of this nature. Longhorn Note Buyers does not charge for our guidance in preparing the affidavit, and we work with you to keep the overall transaction costs as low as possible. There are no hidden fees in our process.

Step Four: Due Diligence and Closing

With the Lost Note Affidavit in hand, we proceed with our standard due diligence process, which includes a title search, verification of the payment history, and review of all available documentation. The due diligence for a note with a Lost Note Affidavit may take slightly longer than for a note with the original document, but our experience with these transactions means we know exactly what to look for and how to verify the information efficiently. Once due diligence is complete, we move to closing, where you sign the assignment documents, we fund the purchase, and you receive your cash. The amount you receive is the amount we quoted, consistent with our we close what we quote guarantee.

Alternative Documents That Can Help

Recorded Deed of Trust

The recorded deed of trust is the single most important alternative document when the original note is missing. Because the deed of trust is recorded with the county clerk, a certified copy can be obtained from county records even if the note holder's copy has been lost. The deed of trust references the promissory note and typically describes the key terms, including the amount, the parties, and the property. It provides independent evidence of the transaction that corroborates the Lost Note Affidavit and supports the note holder's claim to the debt.

Copies of the Promissory Note

A photocopy, scan, or digital image of the original promissory note is not a legal substitute for the original, but it is valuable supporting evidence. If the copy shows the signatures of the parties and the complete terms of the note, it provides a strong basis for the Lost Note Affidavit's description of the instrument. Many note holders, attorneys, and title companies retain copies of closing documents, so even if the note holder's copy is lost, a copy may be obtainable from other parties involved in the original transaction.

Payment Records and Bank Statements

Evidence that the borrower has been making payments on the note is powerful corroborating evidence for the Lost Note Affidavit. Bank statements showing regular deposits from the borrower, canceled checks, wire transfer records, or servicer statements all demonstrate that the note exists, that it is being paid according to its terms, and that the note holder is the person entitled to receive those payments. A long history of consistent payments is particularly valuable because it demonstrates that the note relationship has been active and undisputed for an extended period.

Closing Documents From the Original Transaction

The closing documents from the original real estate transaction, including the settlement statement, the title insurance policy, and any correspondence from the closing agent, can provide additional evidence of the note's existence and terms. These documents may reference the promissory note directly and may include details about the amount, interest rate, and parties that corroborate the Lost Note Affidavit. If you worked with a title company or attorney for the original closing, they may have copies of these documents in their records.

Why Longhorn Can Buy Notes Without the Original

Experience With Complex Documentation

Over 42 years and more than $47 million in note purchases, Longhorn Note Buyers has developed the expertise and the processes needed to evaluate and purchase notes with imperfect documentation. We have seen every type of documentation issue, from lost originals to notes created decades ago with minimal paperwork, and we know how to assess the risks and navigate the legal requirements. Less experienced buyers may decline to purchase a note without the original document because they lack the knowledge or confidence to work with a Lost Note Affidavit. Longhorn Note Buyers has the experience to move forward where other buyers cannot.

Our familiarity with Texas real estate law, the Uniform Commercial Code, and the specific requirements of different Texas counties means we can evaluate each situation on its merits rather than applying a blanket policy. Some notes with lost originals present very low risk and can be purchased with minimal additional documentation. Others may require a more robust affidavit, additional corroborating evidence, or specific protective measures. Our ability to distinguish between these situations and respond appropriately is a direct result of our decades of experience and our exclusive focus on the Texas market. Being a Texas-only note buyer means we have deep knowledge of the legal landscape that applies to every note we purchase.

Why Longhorn Note Buyers

Longhorn Note Buyers has been the trusted choice for Texas note sellers since 1983. With more than $47 million in purchases, an A+ BBB rating, and a 100 percent close rate, we deliver on every promise we make. Founded by Nick McFadin with over 42 years of experience and co-founded by Sandy McFadin in 2013, we are a direct buyer that uses our own capital. We do not charge broker fees or commissions, and our we close what we quote guarantee means the price we offer is the price you receive. Whether you have your original note or need to work with a Lost Note Affidavit, we have the experience and the willingness to get the deal done.

Get Your Cash Offer Today

Do not let a missing original document keep you from selling your Texas note. Call Longhorn Note Buyers at (210) 828-3573 or email sandy@longhornnotebuyers.com to discuss your situation. We will evaluate your note, guide you through the Lost Note Affidavit process if needed, and provide a firm cash offer within 24 hours. No obligation, no pressure, and no hassle!

Frequently Asked Questions

Can I sell my note if I do not have the original promissory note?

Yes. While having the original is ideal, a Lost Note Affidavit can serve as a legal substitute that allows the sale to proceed. Longhorn Note Buyers regularly purchases notes where the original has been lost, destroyed, or is otherwise unavailable. We work with you to prepare the necessary documentation, including the Lost Note Affidavit, and we guide you through every step of the process. Our 42 years of experience mean we know how to handle these situations efficiently and fairly.

How much does a Lost Note Affidavit cost to prepare?

The cost of preparing a Lost Note Affidavit is generally modest. If you prepare it yourself with guidance from Longhorn Note Buyers, the primary cost is the notary fee, which is typically nominal in Texas. If you choose to have an attorney prepare the affidavit, attorney fees vary but are usually reasonable for a document of this type. Longhorn Note Buyers does not charge for our guidance in preparing the affidavit, and we work to keep the overall transaction costs as low as possible.

Will a lost original significantly reduce the price of my note?

Not necessarily. The impact on pricing depends on the strength of the supporting documentation, including whether the deed of trust is recorded, whether you have a copy of the note, and how strong the payment history is. A well-documented note with a recorded deed of trust and consistent payments may receive an offer very close to what it would command with the original in hand. Longhorn Note Buyers evaluates each situation individually and makes fair offers based on the actual risk rather than applying an arbitrary discount for a missing original.

What if the original note shows up after I have already sold the note?

If the original note surfaces after the sale has closed, it should be delivered to the new note owner, which would be Longhorn Note Buyers or our designated servicer. The Lost Note Affidavit typically includes an indemnification provision that addresses this scenario, and the terms of the assignment ensure that the rights under the note have been properly transferred. The discovery of the original after the sale does not create any additional obligation on your part, but delivering it to the new owner ensures the cleanest possible documentation going forward.

Do I need an attorney to prepare a Lost Note Affidavit?

While an attorney is not strictly required to prepare a Lost Note Affidavit, having one review the document can provide additional assurance that it meets all legal requirements. Longhorn Note Buyers can guide you on what the affidavit needs to include and can recommend the involvement of an attorney if the situation warrants it. For straightforward cases where you have good supporting documentation and the circumstances of the loss are clear, many note sellers prepare the affidavit themselves with our guidance and have it notarized without involving an attorney. For more complex situations, such as those involving estate transfers or disputed ownership, attorney involvement is advisable.