Note Sale Recovery Calculator

Lenders sell distressed notes to specialized buyers rather than foreclosing.

Note face value

Sale price % of face

Foreclosure recovery

Foreclosure cost

Sale advantage vs foreclosure

-$360,000

Sale proceeds

$13,640,000

Foreclosure net

$14,000,000

How the math works

Sale proceeds = face × sale %. Foreclosure net = recovery − cost. Advantage = sale − net.

$22M × 62% = $13.64M sale vs $16M − $2M = $14M foreclosure net. $360k disadvantage to sell.

How to Use

Enter note face value.
Enter sale price % of face.
Enter foreclosure recovery estimate.
Enter foreclosure cost.
Read net recovery comparison.

Frequently Asked Questions

Note sale pricing?

Performing: 95-100% of face. Watchlist: 75-90%. Sub-performing: 50-75%. Non-performing: 25-60%. Distressed/REO-track: 15-40%. Note buyer discount reflects expected recovery, time, cost, risk.

When sell vs foreclose?

Sell when: note buyer offers 80%+ of foreclosure recovery, immediately. Foreclose when: buyer offers <70%, lender has workout capacity, and legal infrastructure. Bank lenders often sell to shed bad loans regardless of economics.

Note buyer strategies?

Buy cheap, foreclose or negotiate with borrower. Loan-to-own: acquire control by becoming lender. Restructure and sell performing note. Discounted payoff: accept 50-80% to clear. Each buyer has preferred strategy.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.